Proactive investors turn to property

Bricks and mortar are becoming the investment of choice for those looking for long term security and increasing value as dwindling interest rates and unpredictable stocks and shares are losing popularity, according to Edinburgh property investment and management specialists Cullen Property.

Over the past two months, the company has received enquiries from potential investors who previously preferred other investments to property, but are now attracted by the potential for regular rental return.

Managing Director Malcolm Warrack explains: “With interest rates likely to stay low for some time, investment accounts are not offering great returns and stocks or shares may appear too volatile, which makes investing in the private rented sector very attractive to those who have funds for a deposit.

“Most of the potential investors we have recently spoken to are looking for fairly priced quality properties with ‘loans to value’ of about 50% to 60%.

“We are starting to see sellers accepting realistic offers which offer investors reasonable deals, ensuring rental return and, eventually, capital growth. The most important thing is to pick the right property in the right place and this is where we can help.”

With the Bank of England base rate and retail banks’ lending rates at an all time low, property investors can achieve a high monthly rental yield, in some cases up to £1,400 for a traditional five bedroom flat in central Edinburgh.

Malcolm Warrack continues: “There is a general feeling in the industry that the Edinburgh property market is ‘bottoming out’ and that the next few months will be ideal to snap up a bargain before prices may increase again later on this year or during 2010.”

Cullen Property currently manages approximately 300 properties across Edinburgh. The company offers a full management service, including property sourcing for investors, lettings and refurbishment.