A Landlord’s Guide To New Build Investment Opportunities in Scotland

Buy to let properties, portfolio building & buying off plan

An investment strategy which is often overlooked by buy-to-let Landlords, and those looking to invest money into residential property, is that of buying new build properties and more accurately, buying them off-plan.

In recent years I have experienced and worked with clients that have bought properties off-plan or in the early stages of development at S1’s development at The Ropeworks, Places for People’s Shrubhill Walk site, MNM’s West Bowling Green, Dandara’s Pinkhill development and Robertson Home’s Kaimes Crescent in Livingston.

Often, the client’s have managed to negotiate a competitive purchase price, sometimes with incentives from the builder, and even securing properties with little to no downpayment.

Upon taking ownership of the properties they are handed a high end product that should not require further capital investment for a long time.

With many desirable features included in the properties, such as built in dishwashers and appliances, secure or underground parking, electric car charging points, solar panels, bike stores, there is also the increasing desire from the market to rent properties with strong EPC ratings from an environmentally conscious perspective.

In some instances, we have managed to secure waiting lists for properties even prior to the hand over from the developer.

Investors that secured properties in the early phases of the development and sales process, managed to sit back and watch as not only the market moved positively in the timescale to completion, but also observe as the developer incrementally increased the prices of the remaining phases within the development!

Yes, undoubtedly, calculating Factor’s fees into your investment and cash flow modelling process is not only prudent but essential, however, time and time again, I see investors overlook this strategy in favour of buying properties (often at a bidding war) on the second-hand market. With many being frustrated and unsuccessful at a closing date, where they struggle to compete with offers from owner occupiers.

Whilst the examples above are Edinburgh centric it is currently in Glasgow where I am most fond of the product that developers are creating and the exciting locations within which there are coming out of the ground.

The recent planning application passed for the Central Quay development is a prime example of exciting residential opportunities that offer fantastic buy to let investment opportunities. Contact us to discuss your specific needs direct.