Are you considering investing in property in Liverpool? This comprehensive guide has all the essential information to help you kickstart your investment journey. Discover insider insights, expert advice, various investment approaches, and crucial considerations. Our Liverpool property investment guide is structured into multiple sections, covering the following topics:
- Why invest in Properties in Liverpool?
- Understanding the Liverpool Property Market
- How to find Investment Properties in Liverpool
- Benefits and Risks to Liverpool Property Investment
- How to make money by investing in Liverpool Property
Are you considering investing in property in Liverpool? This comprehensive guide has all the essential information to help you kickstart your investment journey. Discover insider insights, expert advice, various investment approaches, and crucial considerations. Our guide is structured into multiple sections, covering the following topics:
Why invest in Properties in Liverpool?
A Historic and Vibrant City
Liverpool’s long and proud history, rich cultural heritage, music scene, and notable landmarks attract tourists and residents alike. Properties located in culturally vibrant areas can benefit from increased demand and potential for short-term rentals. The city’s vibrant lifestyle, waterfront attractions, and bustling social scene make it an attractive place to live. Properties in the area command premium rental prices and strong resale value.
Investor-Friendly Environment
Liverpool’s property market is known for being investor-friendly, with a range of support services, property management options, and networking opportunities available to help investors navigate the market effectively. Compared to property prices in some other UK cities, Liverpool offers relatively affordable options for investment. This affordability can attract a diverse range of investors, including first-time buyers and those seeking buy-to-let opportunities. Property prices have been steadily rising since 2000, and this upward trend could benefit potential investors.
Ongoing Regeneration Projects
With ongoing development projects and urban renewal initiatives, certain areas in Liverpool have the potential for substantial capital growth over the long term. The ongoing development in the Knowledge Quarter is particularly impressive. This £2 billion project aimed at revitalising the city centre is noteworthy, especially for its significant contribution to the expansion of health and life sciences – an area where Liverpool truly excels on a global scale.
Population Growth
Liverpool’s growing population, including students, young professionals, and families, contributes to a consistent demand for rental properties. This demand can lead to a steady stream of rental income for property investors. The population of Liverpool has grown by 7.5% since 2000 and this trend is set to continue.
Good Transport Links
The city’s well-connected transportation network, including road, rail, airports and even ferries, spells convenience for residents and visitors. Liverpool’s own John Lennon airport is just 7.3 miles from the city, and other main hubs like Leeds-Bradford and Manchester are relatively close by. Properties with good transport links tend to have higher desirability and potential for appreciation.
Understanding the Liverpool Property Investment Market
Before diving into Liverpool property investment, it’s wise to get a good grasp of the Liverpool property scene. Spend some time getting to know the current condition of the market, which includes understanding market trends, average property prices, and any potential risks involved. This will set you up well as you consider your investment options in the city.
Market Analysis
Before you invest, think about checking out market analysis reports and getting in touch with real estate research consultancies. They can give you the most current and trustworthy information.
Liverpool’s property prices have been on the upswing, outpacing growth in several big UK cities by November 2022. While the average UK house price went up by 10.3%, Liverpool shot up by an impressive 13.2%. Even with these rising prices, investing in Liverpool is still pretty wallet-friendly compared to the national average. What’s the inside track? Well, turns out, Liverpool’s property prices are still flying a bit under the radar, and experts think they’re going to shoot up pretty fast. So, if you’re thinking about diving into the property game, it looks like the stars are lining up – now could be the perfect time to make your move and invest in property in Liverpool.
Despite the anticipated fluctuations in the UK housing market in 2023, things are looking up for the North-West and cities like Liverpool in particular, and they are expected to weather the storm and come out even stronger. With regards to Liverpool’s property market in 2023, the outlook is quite promising. According to Savills, the North-West is set for an impressive 5-year growth of 11.7%, the highest among all the regions in the UK.
How to find Investment Properties in Liverpool
Unearthing the perfect investment properties demands a well-thought-out strategy and in-depth investigation. Check out these essential steps to guide you through the journey of locating Liverpool investment property.
Define Your Investment Goals
Start off by getting clear on your investment goals and setting out what you plan to achieve with Liverpool investment property . Figure out if you’re after properties that will bring in rental income or if you’re aiming for properties that could grow in value over time. This clarity will steer you towards the right properties and empower you to make well-informed choices.
Cultivate Useful Connections
Build connections with seasoned estate agents who are experts in the Liverpool property scene. They hold a wealth of valuable information, can help you pinpoint suitable properties, and even handle negotiations on your behalf. Additionally, link up with property wholesalers who are well-versed in unearthing discounted properties not necessarily advertised on regular platforms. These connections might lead you to those hidden treasures that others might overlook.
Know Where To Look
Utilise online platforms, property websites, and real estate portals to scout for Liverpool investment. These handy platforms let you fine-tune your search using filters like price range, property type, and location. On top of that, you can explore property listings, peruse photos, and gather crucial property details, all at your fingertips.
Do Your Research
Do a deep dive into potential neighbourhoods in Liverpool for your property investment venture. Here’s a brief lineup of areas showing promising potential, but remember, it’s always a smart move to conduct your own research before investing.
L1 – Liverpool City Centre
The city centre, home to approximately 36,700 residents, is a thriving hub that presents enticing opportunities for landlords interested in the buy-to-let market. Amidst a mix of period conversions, there’s a plethora of contemporary new build blocks, with even more under construction or in the pipeline. Keep an eye on sought-after areas like the Baltic Triangle, the Ropewalks, and any spots with a waterfront panorama – they’re prime choices for rentals. The Georgian Quarter, boasting restored Georgian houses, has earned itself a spot on The Times’ list of top city centre living locales. Average property prices within Liverpool’s city centre hover around £144,000. You’ll find average yields of 6.1% in the L1 postcode and 5.9% in L2.
Kensington
Recent investments in the local hospital have lent a helping hand to the growth of Kensington. Nestled on the outskirts of the city centre, Kensington stands out as a prime spot for investing in Liverpool property. Over the past year, the average property price in Kensington settled at £138,663.
Edge Hill
Back in 1979, Edge Hill was granted the special status of a Conservation Area, all thanks to the stunning array of Georgian houses adorning the locale. Especially noteworthy are the Georgian gems that grace the vicinity of the historic St. Mary’s church – quite a few of these beauties have even made it onto the esteemed English Heritage list. This area is gold for investors, with a remarkable average rental yield of 9.79%. What makes it even more exciting is its mix of historical landmarks, strategic location, and potential for growth.
Toxteth
Nestled to the south of Liverpool City Centre, Toxteth has made a complete turnaround from its turbulent past to becoming one of the most popular places to live in Liverpool. Amidst a sea of terraced houses, a fascinating transformation is underway – many grand Victorian properties are getting divided into distinct abodes, which has given rise to a growing number of flats. When it comes to affordable property options, Toxteth stands out as one of the wallet-friendlier choices in Liverpool. The area is bustling with regeneration efforts and has caught the attention of students, earning its reputation as an up-and-coming gem within the city. In the past year, Toxteth has seen average property prices of around £157,614.
Wavertree
Wavertree, an outer Liverpool suburb covering the entire L15 postcode, is a hotspot for students, in particular the Smithdown Road area, close to city universities Liverpool John Moores, the University of Liverpool, and Liverpool Hope University. The district boasts top-notch schools, including the prestigious Liverpool Blue Coat School. The iconic Wavertree Playground, also known as ‘The Mystery,’ following its donation from an anonymous source, hosts the Wavertree Athletics Centre, a hub of sports facilities. This blend of features has made Wavertree a hit among families too. Historic gems like the Roundhouse, built in 1796, and Wavertree Town Hall adds to its charm. Over the past year, the L15 postcode saw an average property price of £196,610. This points to a promising property market for savvy investors.
Benefits and Risks to Liverpool Property Investment
The above benefits such as affordable investment opportunities, continuing regeneration projects, a growing population and the vibrant culture of the city make Liverpool sound like an ideal place for property investment, but do be aware: risks are still present in the Liverpool investment property market. Be sure to conduct thorough research and consult legal advice before investing in properties in Liverpool. Here are some benefits and risks to Liverpool property investment you should know.
A Thriving Student Accomodation Market
Liverpool is considered a great city for study, with several local universities, cheap living costs, and lively nightlife. Investors are in for promising returns thanks to the rising wave of students seeking quality digs in the city. With a whopping 70,000 students in the city, the hunger for rental properties is real. This sets the stage for investors to tap into an optimal rental market for their properties.
A City on the Grow
Liverpool has firmly established itself as a standout regeneration hub in the UK. The city has seen a series of rejuvenation efforts, resulting in an array of leisure amenities, close to two thousand residential units, hotels, and top-notch conference venues like the M&S Bank Arena and the Exhibition and Convention Centre. What really sets Liverpool apart is its ability to offer an affordable luxury lifestyle, a feat that many cities find hard to replicate.
Low Rental Values
Liverpool may not give potential investors the same rental values as other similarly sized cities. When it comes to rental units, the spectrum is wide. You might encounter units with a modest 2.5% yield, while others could wow you with a hefty 6.3% or even more. A property’s rental yield in Liverpool hinges largely on where it’s situated and its overall value.
Legal Considerations
Investing in property in Liverpool, as in any part of the UK, involves a web of laws and regulations. Spare a moment to get acquainted with landlord obligations, tenant’s rights, property taxes, planning rules, and other legal demands. This effort will safeguard you from unpleasant surprises down the road. For a confident step forward, consider a chat with a legal expert before you dive into an investment. This will ensure you’re well-versed in all the legal ins and outs.
How to make money by investing in Liverpool Property
Take Advantage of Current Growth
Liverpool is on the rise. While rental prices have been steadily climbing in recent years, we’re not quite at the peak just yet. If the thought of investing in Liverpool property piques your interest, don’t delay. Properties are swiftly vanishing from the market due to this very trend.
Stick To Your Budget
Getting swept up in investment prospects happens all too easily, and suddenly your whole budget is gone. Unexpected costs can also sneak up, so it’s wise to allocate an emergency fund. Keep in mind, Liverpool property investment like any investment is a marathon, not a sprint. It might take a bit before you see substantial returns. Stay committed and patient – the rewards will come in due time.
Do Your Homework
Don’t skip the research phase! Tossing funds into an unfamiliar market is a risky move, so dig deep into understanding the ins and outs of the Liverpool property scene before making any investment commitments. Pay multiple visits to different areas, and consult with seasoned experts in the field. Keep in mind, research isn’t a one-time task; the property landscape in Liverpool is ever-shifting. Staying informed about these changes is vital for a successful investment journey.
Stay Positive
Maintaining the right mindset is like having a secret ingredient for success. Sure, putting in the effort is a big deal, but having that upbeat attitude and positive outlook? That’s what’s going to help you sail through the rough patches, grab those golden opportunities, and ultimately make your mark in the property investment world. So, when bumps come your way (and they will), don’t let them rain on your parade. Be open to stepping beyond your comfort zone, trying out some fresh and fancy investment tactics. Yep, there might be a few stumbles along the path in your Liverpool property investment journey, but guess what? Those bumps are all part of the learning curve – valuable lessons, not reasons to throw in the towel.
