In the past property investment in the UK has been turbulent, with many investors falling for ‘deals’ that involved off plan or new build properties that really did seem too good to be true. The fact is, most of these ‘deals’ were exactly that, leaving investors severely out of pocket, and afraid to invest in UK property because of the way it had been tarnished in the past.
However, there has been one type of property investment that has never dithered in the UK, which is straight forward buy-to-let. This simple yet effective investment strategy has seen off the credit crunch and stood its own, proving that UK property investment is still ‘as safe as houses’.
If an investment is made on a UK resale property, in the valuation range of £55,000 up to a maximum of £160,000 –  investors are not only minimising any risk, they are also maximising any potential net rental income, achieving good long term capital growth and developing a portfolio that will stand strong even in the toughest of climates.
Investors are now looking once again to the UK buy-to-let market, with the rise in rental culture and rents rising above the rate of inflation. This means landlords are cashing in with great yields, particularly on multiple lets and shared accommodation.
The most important part of a buy to let property portfolio is the percentage an investor can get the property behind market value in the first instance. No matter what the current economic climate is like, there are always sellers out their who need a quick sale. You simply need to run an internet search for ‘who will buy my house?’ to discover the number of desperate sellers out there looking for an option to sell their property quickly.
The majority of these sellers are turning to cash buying companies, who typically offer 75% of the market value, but as an individual investor in your local area, you may be able to undercut these companies and offer a little bit more. This means you will get great cash flow positive deals, and whats more, build a portfolio in your local area.
Remember the key things to look out for in any investment are a strong local area (ie, make sure the property is close to local amenities such as shopping malls, places of work and schools), make sure there are good local transport routes (your tenants don’t want to be stuck out in the country away from places of work with no transport), and make sure the area crime rate is low.
If all of this stacks up, and you find a seller who is looking to sell quickly – you have found yourself a bargain, below market value property. This is better than any new build scheme, off plan or any other fad – as you can achieve high yields from the off set.