Forums » Running A Property Management Company

Are flats to rent in Edinburgh good to build your wealth?

    • 18 posts
    December 28, 2018 1:13 AM PST

    Being a letting agent myself, I know that some people consider rental real estate investment to be good for building their wealth. But how often does this really work out?

    In theory, it seems easy that you buy a property in addition to your main residence and rent that for building your wealth. This is because in rental properties tenants are your source of income and they also have to pay your mortgage, which helps in growing your equity over time. However, your ‘flats to rent’ in Edinburgh are not always a sure thing.

    In 2014, I bought a family condo in Edinburgh for renting it out. But my situation didn’t go well due to a number of reasons: 1) the property, after a rising as high as 25%+ over the purchase price, ended up for only a 5% gain through rental. 2) I also had to make some updates in the kitchen and repairs - all were out of profit. 3) For a long time, the property even remained empty because of people willing to living near the city, and my property is in the countryside.

    So, I would suggest you to always calculate your return on investment and other factors, such as recession and location, that may affect your property’s rental situation in the long run.