There are all kinds of property investment opportunities out there. For some investing in student accommodation is a good move, for others commercial property is the way to go. Today, we are going to looking at investing in property located in tourist destinations.
The best of both worlds
Investing in property in tourist areas in Europe can be a great move. You can get several bites of the cherry by doing so.
Your property can be leased to families in the same way any other property can be, but you also have the chance to rent your property, or part of it, out to holidaymakers. When it comes to generating a rental income from your property this gives you several pools of potential customers.
There is the potential to lease your property to holidaymakers at a higher rate than you can charge private renters. Most of the time you will be renting the property in one or two week blocks, but there is a growing market for longer term leases of between one and six months.
Increasingly, leasing to holidaymakers does not mean an intermittent income. This is especially the case if you invest in property in popular tourist cities that receive visitors year round like London or York.
The best letting agencies in York and other tourist cities will advice you about the best way to find both kinds of tenants for your property. If you choose a city holiday destination like York or Edinburgh, you also get a third pool of potential renters in the form of university students.
Rising property prices
In recent years, property prices in many tourist destinations have risen faster than in other locations. Looking at York again, a recent survey shows that rents in York have rose by an incredible 26% in just 12 months. When rents rise like that, the value of properties also grows quickly.
It is not just York where rental rates have risen at a fast rate. Edinburgh, which is also a tourist city, has seen rental incomes rise by 19% in a year.
A growing market for properties in tourist destinations
In addition, there are signs that people are moving away from the South East. In the south of the UK first time buyers have been priced out of the market and more and more people cannot afford to rent there either. Increasingly people are moving further north to areas they can afford.
Many of these young people are attracted to tourist towns and cities. They like the fact there is plenty to do there as well as good employment opportunities. The fact that the population of these cities is growing so fast is another reason buying property in them right now makes a lot of sense.
Most tourist destinations have good amenities. They have strong transport links with other parts of the UK and getting around these cities using public transport is easy. There are plenty of bars, restaurants, attractions and clubs in these places.
Overall investing in property in tourist destinations is a great idea if you do your research.