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  1. Safe investment

As the capital of Scotland, Edinburgh is an incredibly safe place to invest in residential property. Edinburgh has the largest financial sector outside of London, and the sixth largest in Europe (FT, November 2017), as well as six superb universities, a booming tech sector and direct flights across the world.

On top of this Edinburgh property is governed by Scots law. All residential property we sell is freehold meaning your property investment is completely safe.

2. Inflation linked income with Capital Growth

Residential property offers an excellent long-term income stream which is inflation linked and offers the additional benefit of capital growth.

As interest rates are at historic lows around the world,  and with Switzerland, Denmark, Japan, Sweden and the European Union already having introduced negative interest rates (FT, 21 September 2020), the search for income has never been greater.

The Bank of England base rate is currently at 0.1%, and minutes released from the Bank of England’s Monetary Policy Committee on September 17th said the central bank is ‘exploring’ the possibility of introducing negative rates in the UK (FT, 17 September 2020).

In this low (or negative) interest rate environment residential property in Edinburgh looks increasingly attractive to investors, typically yielding 3-4% (net), with the added benefit of capital growth (est. 3%/ year), so provides an excellent long-term income.

Macgregor can help purchase a property with as little as £75,000 for one property, £1m+ for multiple units (or smaller blocks of apartments) and £10m+ for larger blocks suitable for High Net Worth individuals or Family Offices.

For more information on Edinburgh market, have a look at our blog ‘A Snapshot on Edinburgh’.

 3.Magnify returns through borrowing

As an investor it is possible to borrow up to 75% of the value of the property, meaning you only have to put down 25% of the value as equity. This magnifies returns on cash invested to 10-12%, making residential property a particularly attractive investment.

We do not offer advice on how much borrowing to take out on a purchase. Many investors buy with 50% LTV or 100% cash. The decision is entirely up to you and your personal situation.

Macgregor are able to introduce you to mortgage brokers or private banks who are able to help borrowing for international investors to make the process as simple as possible.

4. Hands off investment

Macgregor offer a complete service from selling you a property, to finding you a tenant and managing the property for you, looking after all maintenance issues as they occur. We work on strong long-term relationships with our clients to help provide long term income for them.

5. Education

Edinburgh has a superb reputation for education boasting six world beating universities and some of the best schools in the UK. Edinburgh has the highest % its workforce educated to degree level or higher in the UK with 64.4% (London is second with 61% and Bristol third with 56.7%) (Edinburgh by numbers, 2019).

Source: Edinburgh University

Edinburgh University is ranked 30th in the World (QS World University Rankings) and 17th in the UK (The Sunday Times, 2020), while Edinburgh Napier University, Heriot-Watt University, Queen Margaret University, The Royal College of Surgeons and Scotland’s Rural College (SRUC)  are very highly regarded and attract increasing numbers of international students every year.

Edinburgh also has some of the best fee paying and state schools in the UK. Fettes College (mixed, 68% Boarding /32% Day) is perhaps the most prestigious providing mixed full boarding and an international curriculum through its IB syllabus. Other highly regarded boarding options are Merchiston Castle School (Boys only, 77% Boarding/ 23% Day), Loretto School (53% Boarding/ 47% Day), St George’s (Girls only, 5% Boarding/ 95% Day).

For younger children, Cargilfield (mixed, prep school) offers boarding from age 8 – 13.

There are a wealth of particularly strong fee paying day schools including The Edinburgh Academy (Mixed, Day only), Erskine Stewarts Melville Schools (Day Only, mixed), George Watsons College (Mixed, Day Only).

6. Weak GBP makes purchasing more affordable

GBP is at near record low against the USD meaning any investor purchasing in USD, their money goes further when purchasing UK property.

This benefits not just the USA, but also countries where ther currency is pegged to USD including Hong Kong, Bahrain, Jordan, Lebanon, Qatar, Saudi Arabia and United Arab Emirates.

Source: USD v GBP Graph, XE.com, 27.09.20

7. Direct flights

The relationship between passenger numbers and GDP growth have been studied at length, with them historically exhibiting a strong positive relationship (Connectivity and Growth, PWC, 2015).

Cities with a link through direct flights are more likely to invest in each other, however the extent of cause and extent is an ongoing topic for debate. Ishutkina and Hansman (2009) showed two way causality, while Green (2007) are unable to establish the direction of causality.

Edinburgh Airport is the busiest airport in Scotland and the 6th busiest in the UK with 14.7m passengers per year (Civil Aviation Authority, 2019). Edinburgh has direct flights to 158 destinations worldwide.

Top ten International cities from Edinburgh Airport by Passenger numbers 2018*

Source: Edinburgh by Numbers, 2019

*This does not include domestic travel. In 2018 there were 3.48m air passengers between Edinburgh and London Airports (5 x as many as Amsterdam, the top international destination).

8. Edinburgh’s fantastic history

Edinburgh is a stunning city with such incredible architecture that the New Town and Old Town were awarded UNESCO World Heritage status due to the ‘striking contrast in architecture and street scape between the Medieval Old Town and the Georgian New Town’ (Edinburgh World Heritage).  

The earliest human sites recorded in the Edinburgh Area date back to 8500 BC and the first signs of habitation on the Castle Rock, Arthur’s Seat and its surroundings date to 900 BC (Introducing Edinburgh).

Source: Yves Aralie, Unsplash

9. Quality of life is superb

Don’t just take our word for it – Edinburgh consistently tops surveys on the best quality of life in the world. Top 20 for Wellbeing Worldwide (Knight Frank Wealth Report, 2020), 4th in the World for, Quality of Life (Deutche Bank, Mapping the World’s Prices 2019) and Edinburgh is the top city in the UK to live and work in (Royal Mail, 2018).

10. Air quality is excellent

Air quality in Edinburgh is superb. It is one of the greenest capital cities in the world, behind only Wellington, Stockholm, Oslo, Helsinki and Washington DC.

Source: Greenpeace World Air Quality Report & 2018 & Scottish Air Quality.Scot, 2016

What next?

We are launching several properties on and off market in the coming month, please get in touch for more information.

Michael Hodgson

Partner, Macgregor

michael@macgregorproperty.co.uk

+44 (0)131 283 2833