Win win for Bo’ness landlords – capital growth AND rental yields are higher than in Linlithgow and South Queensferry!

In Bo’ness, I am speaking to more and more landlords, be they seasoned professional landlords or FTL’s (first time landlords), as they read The Bo’ness Property Blog that shows that the Bo’ness rental market is doing reasonably well, with rents and property values rising. 

When I was having a chat with one of these landlords over a cup of tea in Brian’s Cafe the other day, he asked me two completely unrelated questions that got me thinking.  The questions were, how much faster are Linlithgow and South Queensferry property prices rising than Bo’ness ones (he has properties in all 3 towns) and how much he should be paying per square foot?

Interestingly, we both thought that obviously Linlithgow and South Queensferry property prices would be rising faster than Bo’ness property prices but, going by my mantra of ‘never assume nuthing’, I did my research and was astounded by what I found.

Over the last twenty years, property values in Bo’ness have risen by 240.97%, compared to Linlithgow’s 240.95% and 238.29% in South Queensferry.

This is an astounding result as it turns the historical view of the capital growth vs income see saw on its head.  The capital growth vs income see saw says that the higher the capital growth the lower the rental yield and vice versa. 

However, the property values research I did means that not only has capital growth been greater in Bo’ness than in Linlithgow and South Queensferry, but your investment money also goes further in Bo’ness as properties are cheaper meaning there will be higher a rental yield – in Bo’ness you can get easily 6-8% whereas in Linlithgow and South Queensferry you are lucky if you get 5-6% per year.

So looks like ‘you can have your cake and eat it’!

What about the ‘how much he should be paying per square foot’ question I hear you say?  Well, that’s a topic for a future blog post .... watch this space.

Whether you are a landlord, a ‘Homes Under the Hammer’ addict or just a homeowner who is interested in what is happening to the local property market, then please visit The Bo’ness Property Blog (www.thebonesspropertyblog.co.uk), contact me for a chat (phone on 01506 828096), come and see me in my office (6 Vicar Street, Falkirk) or email me (robert@thekeyplace.co.uk).

www.thekeyplace.co.uk

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