Mary Stuart or Elizabeth I, the red uniforms of the royal guard or the checkered kilts of the highlanders, and, in the end, a glass of whiskey or a cup of tea - what do you choose? It’s too early to answer this question until you have compared the most important thing – the real estate markets in England and Scotland. For analysis, we decided to take London and Edinburgh. The state of affairs in the capital always speaks eloquently about the country as a whole, so these two cities are quite enough for you to decide what objects to add to your investment portfolio.
Big Ben instead of an alarm clock
London is not only the capital of England, but also the heart of the whole of Great Britain. Being a major financial and cultural center, it dictates fashion, attracts businessmen and promises them considerable profits. We suggest you skip the stage of starting your own business and go straight to buying or renting real estate to make your daily business a little easier.
Renting a small apartment is ideal for your first acquaintance with the city. What's the price in the English capital?
- A one-room apartment in the center costs £2,200.
- A one-room apartment in the suburbs can be found at a more affordable price of £1,600.
If you are planning to live in London with your family, you will have to fork out for more spacious living space:
- the cost of renting a three-room apartment in the center starts from £4,200;
- in more remote areas you can rent a similar property for £2,700.
The difference in price is impressive, but in terms of amenities it will be corresponding. Take this into account when choosing an apartment to buy. You will have to spend twice as much on a facility in the center, but the payback will be appropriate. On average, 1 m² costs £13,500 in the center or £7,700 in less prestigious areas. The British have to save for many years for their own housing because the average after-tax salary is just £3,400, which isn't even enough to invest in a storage unit. Having a mortgage in such conditions is a salvation for many buyers. If desired, you can take out a loan for 20 years with a fixed rate of 5.6%. Is it worth it? It's difficult to calculate, but it's possible. Just keep in mind that the average rental yield is 3.62%.
The morning does not start with coffee
The first thing worth saying about Edinburgh is that, compared to London, it is much more affordable in terms of prices. If we do not take into account the level of wages of the local population, but take into account only the subjective view on the part of the Ukrainian investor. The original city is calmer and more reserved, its population does not reach 1/10 of London's, so the Scottish lowlands are suitable for a measured life.
To check whether this pace suits you, try renting a small apartment:
- a one-room apartment in the very center of Edinburgh will cost £1,300;
- the same property, but on the outskirts, will cost you only £900.
The family version costs almost twice as much, but also offers more space:
- monthly rent for a three-room apartment in the center reaches £2,300;
- for three rubles in other areas, expect to pay from £1,500.
If you are already too successful to wander around rented apartments, think about buying. Moreover, prices in Edinburgh are much lower than in London. Prices for one-bedroom apartments in the center start from £5,200 per 1 m², and in neighboring areas - from £3,500, which is half the typical English prices. How affordable housing is for the Scots themselves can be judged by their average monthly income. After tax, that leaves around £2,440 on hand. With lower earnings and lower prices, Edinburgh surprises with its mortgage rate of 6.12%. But don’t let this fly in the ointment spoil your impression of the city because the slightly inflated interest rates are more than offset by a rental yield of 5.41%.
Want even more price battles between countries? We invite you to take a look at the comparative characteristics of Germany and France. Where is it more profitable to invest?