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The Benefits of Investing in Luxury Liverpool Property in 2024

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    Why Luxury Apartments Could Be a Profitable Investment in Liverpool?

    According to Savills, the North-West buy-to-let market should see returns of 9.2% throughout 2024, making it one of the most lucrative residential markets in the country.

    Following this news, we can expect that many buy-to-let investors will turn their attention to the places in the North West with high yields and good-value properties.

    Liverpool is one such city. With average property prices around £178,000 (according to the HM Land Registry UK House Price Index) and high rental yields in certain areas, Liverpool allows investors to enjoy high returns on buy-to-let investments in the UK in a city popular with students, professionals and tourists.

    But what types of properties are available in Liverpool?

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      Liverpool skyview

      Luxury Property Investment vs Budget Investment

      Buy-to-let investment is a popular venture for those looking for long-term financial gains. Whether to grow capital, establishing a stable property portfolio is often preferred to keeping money in a savings account.

      Why? Because keeping your money in property allows the value to appreciate along with inflation. If you were to keep your funds in the bank, they would not be as worth as much in the future as they would have if you’d invested wisely in the right property.

      That’s not to say that every property will yield the same results. Investors must thoroughly research the best areas, property types, and tenant demands to find properties that allow for the most substantial appreciation.

      Investors must also consider the current buy-to-let rules and regulations, such as EPC requirements, to ensure their property does not come with unsuspecting costs.

      For this reason, buy-to-let landlords may want to add luxury accommodation to their portfolio. These types of apartments have the potential for massive returns and offer numerous benefits, such as high appreciation, prime location, tenant satisfaction and energy efficiency.

      Looking for upscale properties to buy in Liverpool? Let’s look at the benefits of investing in Liverpool luxury accommodation in 2024.

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        The Gateway Liverpool

        What Is a Luxury Buy-to-Let Investment?

        Luxury buy-to-let investment involves purchasing high-end properties to rent them out for premium returns. Investors target affluent tenants seeking exclusive living experiences, aiming to capitalise on the property’s upscale amenities, prime locations, and superior design.

        This investment strategy requires a significant upfront investment but offers the potential for lucrative rental income and long-term appreciation. The appeal lies in attracting discerning tenants who value luxury, providing a unique opportunity for investors to generate substantial profits in the upscale rental market.

        Success in luxury buy-to-let hinges on careful property selection and understanding the preferences of the high-end rental demographic.

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          Baltic-Triangle

          Long-Term Value in Liverpool Luxury Properties

          As previously stated, long-term capital appreciation is one of the key benefits of investing in a prime property investment opportunity in Liverpool.

          Liverpool’s leading property developers work diligently to identify parts of the city that will see substantial capital appreciation. While many investors look for luxury investment opportunities in already prestigious locations, Liverpool has numerous up-and-coming areas expected to witness considerable booms in rental demand following an extensive regeneration period.

          The Baltic Triangle is a location that has recently benefitted dramatically from regeneration. A once derelict collection of disused warehouses and rundown industrial space, the Baltic Triangle has been transformed into a thriving hub for creatives and innovative industries, becoming a highlight of the city’s residential sector.

          Purpose-designed residential projects like Parliament Square and the upcoming Heaps Mill initiative are revitalising the local housing landscape, introducing upscale living to a highly coveted area in the North West property market.

          Over £190 million has been invested in the Baltic Triangle, and the imminent opening of a new train station connecting the area to Liverpool’s rail service is poised to boost the Baltic’s appeal for investors and residents even more.

          As such, if you have invested in luxury property in this area, you’re likely to see the region grow in stature over the next few years.

          As demand for property increases in the Baltic Triangle and other up-and-coming rental hotspots in Liverpool, the price of an apartment in those areas is likely to increase as time goes on steadily. This is great news for people who have a property investment portfolio in the area.

          Learn More: If you want to understand more about the costs involved with property investment, check out our buy-to-let income calculator.

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          Liverpool Luxury Buy-to-Let Allows Investors to Diversify Their Portfolio

          Diversifying your portfolio is one way to ensure stable returns as a property investor.

          Diversifying a property portfolio involves strategically acquiring various property types, locations, and investment structures to mitigate risks and optimise returns. This approach spreads the investment across different markets, reducing vulnerability to economic fluctuations while capitalising on multiple income streams and potential appreciation in various property sectors.

          As such, property investors may want to add luxury properties to their portfolio and target higher-earning tenants.

          Advantageously, Liverpool offers the opportunity to purchase luxury buy-to-let apartments cheaper than in many other cities in the UK while still capitalising on substantial rents.

          For example, the average property cost in Liverpool is 30% below Manchester and 99% less than London, leaving ample room for value appreciation.

          In August 2023, Liverpool’s average property price stood at £178,000 (as per HM Land Registry UK House Price Index), making it 18% more affordable than the North West average and 48% cheaper than the national average.

          The city’s waterfront offers premium properties at prices comparable to Manchester and Birmingham but with significant capital appreciation potential. Real estate company Savills predicts a 20.2% capital growth in the North West over the next five years, suggesting significant potential for the appreciation of these good-value luxury properties in the coming years.

          Read More: For further information on the North West property sector, check out our guide on investment properties in Manchester.

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          Hand adjusting EPC Level

          Luxury Buy-to-Let Allows for Unparalleled Amenities and Energy Efficiency in a Climate-Conscious Era

          According to a poll by uSwitch, EPC ratings are one of the first things people consider when choosing a property to rent.

          The cost-of-living crisis has forced people to think more about their energy bills. In addition, while the government went back on their EPC regulations in 2023, industry experts expect those requirements to come back soon. For instance, Rightmove’s David Cox recently said:

          “It’s likely that EPC requirements in some form will re-appear in the near future, so landlords with lower EPC-rated homes should still keep this in mind and consider the improvements they might make. However, with the deadline scrapped and all the attention on the Renters’ Reform Bill, it may be that while focusing on the changes the Bill brings in, considerations about green improvements take a back seat for some landlords.”

          For this reason, buy-to-let investors should consider properties that offer energy efficiency straight away. Typically, new-build properties will come with modern amenities that prioritise energy efficiency. For instance, Liverpool’s first eco-property, ELEMENT – The Quarter, features sustainable technology like heat pumps, appealing to climate-conscious individuals.

          Regarding amenities, luxury properties have unique features distinguishing them from more conventional homes. The Gateway – located in a rental hotspot near Liverpool’s business district – will offer a pool, spa, concierge service and New York-style living on our side of the Atlantic.

          These features enhance a property’s appeal, attracting high-end investors and tenants, and help ensure properties keep their value over time.

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            Investing in Luxury Property Investments in 2024?

            Luxury property investments provide numerous advantages, making it a good choice for investors aiming for sustained capital growth and steady rental returns.

            With prospects of long-term value appreciation and exclusive amenities, the luxury property market in Liverpool offers a compelling addition to a property portfolio.

            Nevertheless, investors must still consider factors like location and market trends to ensure they get the most out of their investments.

            Luckily, Savills recently published their cross-sector property forecast. As previously stated, the North West buy-to-let market may see returns of 9.2% in 2024, making luxury buy-to-lets in Liverpool one of the most potentially lucrative assets in the residential sector.

            Find Out More: Want to know more about the buy-to-let scene in other cities? Check out some of our other area guides, including:

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            Author

            Dale Barham

            Dale is a property content writer at RWinvest. Keeping a close eye on the UK property market, Dale helps our readers stay informed and up to date on the latest market news and statistics.

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