Why Invest in Newport Serviced Accommodation?

Are you looking to invest in a rental property? As experts in the property field, we understand that doing your homework is essential to getting it right. It’s vital to do your research, to have a good understanding of the property market. If you want your property to be a lucrative investment, that is. So whilst you’re considering embarking on this new chapter, let us give you something to think about. Investing in serviced accommodation in Newport. Just to be clear, that’s Newport, South Wales not the one in Pembrokeshire or any of the other 12 Newports in the UK.

Why invest in rental property? 

Opting for rent to rent property, not only offers you a chance to grow your assets through means of locking away your money, but also generates a regular income. And if set up well, the property itself could require minimal input from you, after the initial investment. Should it increase in value, there’s potential scope for the long-term yield too. There are loads of important factors to consider when choosing a property, the first and most important is your budget. You must have a solid understanding of your budget to work out your rental yield.

So let’s talk about ‘Property yield’

Once you know your budget you can work out the annual percentage of the return you will receive through income. AKA the ‘rental yield’. This is used as a baseline factor to determine the profitability of the property in question. From this, you can decipher if the property is a worthwhile investment. Thankfully rental yields can be assured for a minimum of a year, sometimes more. A good rental yield can be anything from a 5-8% return. This can be calculated by multiplying the monthly rental income by 12 and then minus all annual costs associated with owning the property. Depending on the type of property such costs could look to include service charges or maintenance fees for example. 

In Newport, landlords can earn yields of almost 6%. Average yields in Newport are similar to Cardiff at 5.3% However, the average price of property in Newport is £183,127 compared to £213,000 in the Welsh capital. With property prices and yields at such competitive rates compared to the rest of the country, it makes sense to consider investing Newport property. 

Do your location research

When you’re looking at buying a property, location really is everything. It’s important to check out the area. How close are amenities? Having a good selection of shops within 5 – 10 minutes from the property will drive up the value. Highly rated schools will also add to the value. In fact being located next to a good school or university is arguably one of the safest ways to invest in property. Transport is another key factor. What are the bus routes like? How close is the train station or motorway? It’s also worth researching any building plans that may be in place by the local council. Remember to check out the neighbourhood too, if you have the option to walk around and get a feel for it even better.

So why Newport?

Well if you take into account all of the things that tick the boxes when searching for the ideal buy-to-let, Newport is the perfect location. It has great transport options like the M4 motorway, giving direct access to cities such as London and Bristol. Cardiff Central is a 12-minute train journey and you can be in the beautiful Brecon Beacons in 81 minutes. Newport is on the rise, seeing steady growth thanks to the abolition of the Severn bridge tolls. Redevelopment of the shopping centre and bus station contribute to the city’s likability. And of course, the relatively new, Celtic Business Park, will assist in the welcoming of more businesses. Once an industrial town, Newport is gradually gaining recognition for its quirky indie shops and businesses. The likes of Diverse Music on Charles Street or award-winning Tiny Rebel brewery, have become popular amongst the millennials. These are just a few of the contributing factors as to why a buy-to-let in Newport could give you a great return on your investment. 

It’s important to remember that buy-to-let property is not always a fail-safe investment. This is why choosing the right property, in the right location is so crucial. Timing is a key factor to getting it right, so a good understanding of the property market will aid your decision. Taking into account all of the regenerative plans Newport has in place, the time to invest would be now. Before new plans and developments drive up property prices. So why not strike while the iron is hot? 

If you’re looking for advice on your investment in Newport, or for a range of other property services, please feel free to reach out to us. Properti.co.uk would be happy to assist you.

Why is Newport so popular?

Let’s get one thing straight first, Propertri is in Newport, South Wales in the county of Gwent, historically part of Monmouthshire, not to be confused with any of the other 14 places named Newport in the UK.

Newport is the third-biggest city in Wales with a population of just over 150,000 . Historically, it was known for heavy industry including coal and steel, in its industrial hayday the port was the country’s largest coal exporter. The Welsh name for Newport is Casnewydd, meaning a new castle which points even further back to the origins of the city.

In fact, Newport was only granted city status in 2002 to mark the Queen’s Golden Jubilee. This helped to raise its profile and boost the economy. Since then Newport has been seen as one of the most forward-looking and best places for investment in Wales.

One of the best things going for Newport is its location with easy access to Cardiff and Bristol from the M4, just 12 miles and 30 miles away respectively. You can jump on a train and be in London in just over an hour and a half, Cardiff is 12 minutes on the train.

Since the tolls on the Severn Crossing were abolished in 2018, Newport has become an even more attractive place to live, especially for anyone crossing the bridge to work in Bristol and other parts of south-west England as they save around £1,400 a year on toll charges.

But Newport isn’t just a convenient location to travel to other parts of the country

Newport was recently ranked the third-best place in the UK to live, making it the number one place to live in Wales. This was based on the availability of jobs, average salaries together with rental price and house prices.

The University of South Wales with its Newport campus overlooking the river Usk produces plenty of bright graduates looking for careers and work placement opportunities with local businesses.

Major employers include Admiral Insurance, Go Compare, The Intellectual Property Office and the Office for National Statistics (ONS). All of whom have helped changed the image of Newport from an old industrial town to a thriving centre for the modern services industry.

New investment includes a £70m on new conference, events and exhibition centre ICC Wales, the International Convention Centre Wales , at the Celtic Manor Resort on the M4 on the way into Newport.

This follows a £100 million spent in 2015 on the Friars Walk retail and leisure centre in Newport city centre. This along with the Riverfront Theatre and the Geraint Thomas National Velodrome of Wales (one of five internationally recognised indoor velodromes in the UK) all of which mean that there are plenty of things to do.

Future investment plans include transforming the regeneration of the former Newport Llanwern steelworks transforming it into a new community including 4,000 new homes, schools, sports facilities and a business park that promises to create thousands of jobs.

Whatever your reason for visiting Newport you’ll receive a warm welcome and have a comfortable stay in our serviced accommodation.