Water has been the source of settlement since the dawn of time, providing and sustaining life for millennia. Great cities and towns have been built on the banks of some of the most famous rivers, supporting radical change throughout the ages, and still in the 21st century water is a sought-after commodity when it comes to real estate.
With the impact of coronavirus rippling through the world, it has been recognised that many are taking to the markets in search of new homes to match their newly more flexible lifestyles and to address key themes such as mental and physical well-being. Previous studies highlighted key reasons for seeking waterfront properties as: views, exercising and mental well-being. Senior research analyst Chris Dune reports that UK properties located near water are worth an average 46% more than homes located further away, this lifestyle realisation has reflected significantly in the rising prices of waterfront properties in the twelve months to June 2020.
With over 60 years’ combined experience, Romal Capital’s formula to ensuring both high capital gain on investment and high rental yields is selecting the right location, with water identified as the singular most appealing USP that marries the two together.
With an opportunity to invest in real estate in the likes of the stylish and modern Liverpool Waters development, here are three reasons why investing in waterfront property in Liverpool can make you money.
Liverpool as the city of culture in 2008 has been subjected to a significant urban renewal, showcasing to the world its rich history, vibrancy, diverse culture and unmistakable brand. Year on year numbers of people visiting this marvellous city have grown, in 2019 Invest Liverpool reported 67.3m visitors with the tourism industry worth over £4.9bn, feeding into increased employment opportunities.
Liverpool’s four nurturing universities and specialist schools attract a total of 70,000 students per year, with over 25,000 of them international students. According to research conducted by Savills estate agency for The Sunday Times, Liverpool is the best city in Britain to be a young graduate, and has a graduate retention rate of 31%. With ever increasing employment opportunities, Liverpool encompasses the ideal location for work hard and play hard individuals.
Accommodating the next generation of working professionals, Liverpool is home to several high value industries from Public administration, Education and Health to Banking, Finance and Insurance. According to Glassdoors the average salary for a graduate in Liverpool starts from £25,500.
High Rental Yields
According to Property Investors, a good rental yield for buy to let property is 7% or more and in 2019 Buy Association reported that Liverpool has six postcodes listed in the 25 best areas for buy-to-let investment in the UK. The L1 postcode came out in the top spot with a 10% yield, whereas L2, L3, L4, L6 and L11 came out with yields ranging from 7.13% to 8.67%.
In addition to postcode, Strutt and Parker found that access to amenities was important for 54% of home movers and added value to the property. Within the findings, some key amenities were identified that boosted property prices such as: high quality high-street restaurants and sports venues. A study by the London School of Economics found that prices around the new Wembley stadium enjoyed a significant increase in property prices close to the stadium of up to 15%, which gradually decreases in distance to the stadium. Arguably this is due to the large investment and transformation being dedicated to the local area to improving infrastructure and public areas, attracting future business and promoting an area.
Finally, when it comes to views Mike Purser claims that the biggest attraction of a view continues to be a large body of water, the value of a property will certainly increase a considerable amount feeding nicely into higher rental yields for investors.
Well – Connected
To further drive high rental yields, Liverpool boasts an easily accessible central northern location with a variety of transportation links to ensure fast travel on a regular basis. From ferry, to train and to plane – Liverpool has it all.
There are four main train stations in the centre of Liverpool consisting of Lime Street, Moorfields, James Street and Central. All are connected via the Merseyrail and have regular services around Liverpool and the Wirral area with Lime Street offering farther afield locations such as Manchester, Birmingham and even London – direct 2 hours 12 minutes.
With easy access to international travel, Liverpool is home to the John Lennon Airport and within 40 miles of Manchester Airport, offering flexibility on travel destinations and is accessible via the North Cheshire Motorway (M56), and the M62 Trans-Pennine motorway.
Finally, the ferry terminal offers getaways to the likes of Ireland and Isle of Man, accessible by the 24 ferries running per week, across 2 ferry routes, and provided by 2 ferry operators, with sail times of between 2 hours and 45 minutes, and 8 hours.
Liverpool truly oozes an abundance of desirable attributes that would provide investors with high rental yields for years to come, as the city continues to evolve with ongoing investment coupled with its northern central accessibility and rising footfall per year, now is a really great time to own and be a part of something bigger.