The culture-point and hub for creativity and innovation, big cities around the world are often regarded as the places to be for job opportunity.
An increasing number of people are moving closer to the city or into it entirely, and it’s not just young people or entrepreneurs looking to grow their careers either. Many older people and retirees are increasingly looking to downsize their family homes, and move into more ideally located, compact apartments that are more accessible and easy for them to manage.
This presents quite the lucrative opportunity for investors, as they can get in on this rising popularity, benefitting from the surrounding regeneration and leveraging the excitement that comes from a city-centre location. Here’s a closer look at how you can build up your finances by leveraging different developing cities, and investing for the future.
The perfect opportunity for beginners
Just as cities have a wide range of different people living there, and using different facilities for different reasons, they also have a range of different property types, ranging in size and values. This means that there are investment opportunities for investors of all types, from those who have never invested before and have a restricted amount of capital, to veteran investors that have plenty of properties under their belts and want to move onto a different area.
- Starting off investors could go for a student studio property as their first venture, as they are compact, affordable and manageable. If wanting something a little more hands-off when getting started, they could also go with a property that has a management company to control the day-to-day ongoings of the property.
- Experienced investors may decide to bolster their portfolio by investing in multiple different smaller properties in a cluster, benefiting from multiple income streams from the rental yield. They could even have properties in different cities if wanting to benefit from the economies of different areas.
Benefitting from city regeneration
Again, one of the great things about having an investment that is rooted in the centre of a developing city is that its prospects will naturally grow and flourish as the city does. You’re essentially benefitting from a range of different things that are beyond your control, and you can market them, too.
A great example of this is in the Liverpool area in the UK, which has a massive number of regeneration projects currently ongoing, RWinvest, an award-winning property investment company with offerings in and around Liverpool and the North West in general, state the importance in many of their guides of projects such as the Liverpool waters development, which started in 2018 and is worth around £5.5 Billion. This will drive a huge amount of tourism and residential interest to the city, which is good news for the area.
Manchester, Liverpool’s northern neighbour and another prime investment spot in the UK, is one that has experienced this sort of regeneration in the past few years. While it is still a great place to buy property going forward, with high rental yield projections and good potential for price growth over time, Liverpool has perhaps more extensive regeneration on its horizons.