Why Invest in Newport Serviced Accommodation?

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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.

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