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Active Or Passive Property Investment?

Active Or Passive Property Investment?

Active Or Passive Property Investment Methods

– Which Works Best For You?

There are many different approaches to property investment and a multitude of different methods and strategies that can be employed to generate profits from property, but which style of property investment methodology works best for you?

There isn’t enough room on this post to go into a great deal of detail about each and every different property investment method and strategy in use today, so we will just stick to a more broad descriptive about the advantages and disadvantages of active and passive property investment methods and we will focus on only the main points.

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The Increasing Need For Student Property

The Increasing Need For Student Property

Student Property: Just How Great Is

The Need For It?

When it comes to tactical property investment, it would appear that the UK student property sector could be one of the shrewdest and lucrative choices property investors can make right now.

In 2013 over £2 Billion (GBP) was pumped into the student rental sector by savvy property investors who calculated the increased potential yields were well worth the risks.

This is because demand for student accommodation is at a record high and seems almost certain to continue increasing due to the growing number of UK and overseas university applications being made by prospective students and the increasing number of places being offered on courses by universities in order to attract student interest.

The UK is the current leading host country for attracting international students, with higher demand for places from foreign students than the USA, making our nation the world’s unopposed central student hub, and with good reason, our higher education system is among one of the best in the world, so it is of little wonder that many world leaders are choosing to send their children here to give them a head start in life. And the way current demand for university places is growing suggests that this top education status will not be changing any time soon.

Year on year there has been an increasing number of international students seeking a decent place to live, among fellow undergraduates, while they embark on their studies. Property investors are looking for properties within the

This means that in many UK university towns and cities, market rental prices will inevitably increase due to the increased demand for dedicated student properties, and property investors are virtually guaranteed to see a quick return on their investments because of the overwhelming need for their services.

Yields in student housing are 5-6% higher on average than the standard residential property in the private rental sector returns are well worth the effort.

See the infographic below to view the most important statistics on the current climate of Student Property Investment in the UK today.

Written by Braedon Frank
AspenWoolf.co.uk

Student Property Investment

Created by Aspen Woolf
Property Investors Should choose Investment Properties Wisely

Property Investors Should choose Investment Properties Wisely

Property Investors Warned To Choose Potential
Property Purchases Wisely

Savvy property investors know that profit is made when buying property, not when it is sold, as equity can be locked in upon purchasing below market value, giving the property investor greater control of the purchase price by negotiating a deal with the seller, (vendor), rather than what the property eventually sells for on the open market.

Property investors are different from ordinary residential property buyers, as they are of the mindset that the property should meet all the financial requirements of a landlord first & foremost, rather than paying the high end retail price for a property just because it looks nice.

Many new and amateur property investors make the common mistake of falling in love with a property and begin to let their heart rule their head, becoming so emotionally involved that they lose control of their finances and let their emotions win, overspending massively and reducing any potential yield.

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Free Webinar Packed Full Of Useful Content

Free Webinar Packed Full Of Useful Content

Free Webinar Packed Full Of Useful Content 

The ‘HMO Daddy’ Jim Haliburton is recording a free training session
for property investors who want to get better yields and increased return on investment from their property investments.

You may remember Jim from the Channel 4 TV programme “Meet The Landlords” where he showed the TV cameras inside a couple of his HMO units and didn’t shy away from revealing the struggles that some landlords face on a daily basis.

Jim has always had a no nonsense approach and tells it like it is and he has agreed to provide a great deal of solid content with real ‘meat’ from his paid workshops – all for FREE!

You can register here now

In this free online training, Jim will provide insight for those people who want to get started in property investing, as well as providing great information for those people who are already investing and wanting to know how to get a better Return On Investment (ROI) and higher yields from their property portfolios.

Free HMO training with Jim Haliburton

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Property Investment in the Caribbean

Property Investment in the Caribbean

Spotlight On Overseas Property Investment In The Caribbean

As far as luxury tourist destinations go, the Caribbean is up there with the best of them. Much of the Caribbean’s thriving economy stems directly from the tourism industry, and it’s no wonder why. With demand high for tourist property, and jobs aplenty, the future looks bright in this part of the world.

These stunning islands are also a popular hotspot for the wealthy to live or to have second homes. Consequently, the Caribbean provides an exciting opportunity for property investors, with wealthy locations such as the Bahamas providing a particular source of interest.

The opportunities for property investment in the Caribbean are many and varied. The most popular properties are those which cater for tourists, being that this is the most common widely sought after type of property.

With a booming tourist industry, the decision to invest in tourist properties has proven to be a profitable and wise choice for many investors, and continues to bring excellent returns. Tourist property developments are continuing to appear, bringing an increasing stream of investment opportunities in this sector.

Alongside tourist properties such as hotels and holiday homes, commercial properties for sale in the Caribbean are also a sound investment choice in places with high volumes of tourists. Where people travel, they spend money in bars, restaurants and nightlife, so this can be an alternative way for investors to tap into the profitable potential of the Caribbean islands.

Alongside tourist properties, residential investment opportunities are also available, with strong economies meaning that people are able to buy or rent housing in pretty large quantities, which in turn means that demand is always there for such properties.

Luxury residential properties are another veritable goldmine, with many wealthy people seeing the Caribbean as a great place to live or to have a second home. Because of its stunning scenery and beautiful climate, the Caribbean is an attractive place to live for some, if not all, of the year. Overseas property investment can therefore also be a very profitable decision.

It is perhaps best to focus attention on the islands with the strongest economies, such as the Bahamas. These are very popular with tourists and can lead to many profitable opportunities in terms of tourist accommodation, residential property and commercial buildings.

Whilst the Caribbean offers some excellent opportunities for investment, it is worth remembering that laws, customs and values can differ widely between each of the different islands. Best practice would perhaps be to ensure that you acknowledge the local customs by enlisting the help of a local expert to assist in any purchases or dealings.

UK Buy-To-Let Property Returns Better Than Fixed Rate ISA’s

UK Buy-To-Let Property Returns Better Than Fixed Rate ISA’s

UK Property Investment Offers Better Returns Than Fixed Rate ISA’s

UK investors are putting even more of their money into property investments rather than saving using an ISA because the returns can be far better.

UK property values have increased 11% year on year despite the property crash in 2008, however, the best fixed rate ISA offered by UK banks only offers savers an annual return equal to 1.85%.

The rise in UK property prices has caught the attention of diverse investors who would usually opt for different types of investment products to give them good  returns on their investment funds.

Property investment in the UK’s private rented sector allows investors to build profitable rental portfolios that produce better yields than other types of investment funds, including ISA’s.

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Property In The North Is Cheaper

Property In The North Is Cheaper

North of England Leading The Way
For Renting Property

Renting property is more affordable in Northern regions of the UK as property prices in some areas stretch beyond of the reach of the average earnings of first-time and next-time buyers.

Chichester is the least affordable place to buy or rent property in the UK, whereas Hull and Belfast are the most affordable.

Middlesbrough, Dudley and Wolverhampton have the most affordable rental markets in the UK with 99% of properties within an average working couple’s budget.

The North-South divide is still prevalent in the UK property market with the most affordable properties located in the North of the country, where first-time and next-time buyers in full-time employment have the largest pool of properties within budget to choose from

Rental prices in East Anglia and the South East of England are among the highest in the UK according to analysts as these areas outperform the rest of the country, due to high tenant demand.

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UK Buy-To-Let Landlords Want To Expand Rental Property Portfolios

UK Buy-To-Let Landlords Want To Expand Rental Property Portfolios

UK Buy-To-Let Is Booming Again!

According to a new study conducted by market research firm BDRC Continental, UK Buy-To-Let landlords want to purchase more rental properties over the next 12 months.

The survey showed:

  • 23% of Buy-To-Let landlords plan to grow their rental property portfolios within the next year
  • 61% Buy-To-Let landlords are confident about the future prospects for their rental businesses.
  • 40% of Buy-To-Let landlords have increased rents during the last 12 months.
  • 7% of Buy-To-Let landlords had lowered rents in order to retain tenants.

The survey also discovered that tenant’s are staying longer in the same rental property, for an average period of two-and-a-half years.

This is good news for buy-to-let landlords as the UK private rented sector is growing at such a rate that landlords with low fixed rate or tracker buy-to-let mortgages are enjoying excellent rental returns and are able to fund further property portfolio expansion.

The survey also found that an average two-bed flat in central London now commands an average rent of around £1,515 (GBP) per month, that is more than three times the average monthly rent of £480 (GBP) for a similar property type in the North-East.

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Smaller Buy-To-Let Properties Provide The Best Rental Yields

Smaller Buy-To-Let Properties Provide The Best Rental Yields

Smaller Buy-To-Let Properties Provide

 The Best Rental Yields

A one-bedroomed rental property in Wales may not sound like the most glamourous of property investments but it could deliver the best rental returns for landlords according to a new in-depth buy-to-let report by the UK’s largest lettings agency Countrywide.

A survey of more than 50,000 Private rented sector property owners has revealed Buy-to-let landlords are getting excellent rental yields in Wales, the North of England and the Midlands from 1 and 2 bedroom rental properties.

Landlords in many parts of Wales are achieving an average 6.7% rental yield (rent measured as a percentage of the property price), beating the North of England and the Midlands, which both average a 6.5% rental yield.

These figures are substantially higher than the average 4.6% rental yield observed in parts of Central London, regarded as the red hot heart of the UK’s property market.

One and two-bedroom rental properties have seen the greatest increase in average monthly rental prices in April 2013, with a 1.4% and 1.3% month-on-month increase to £679 (GBP) and £766 (GBP), respectively.

The detailed report into buy-to-let rental returns was conducted by Countrywide, who found that average monthly rental prices in England, Scotland and Wales have continued to increase for six consecutive months to reach an average of £842 (GBP) in April 2013.

But rent increases remain below the increased cost of living, with an annual average increase of just 0.8% measured against Consumer Price Index inflation of 2.8%.

However, average monthly rents have fallen within Central London, the South East, Wales and parts of Greater London.

The biggest rental price drop of 6.3% was seen in Central London, where average monthly PRS rental prices average £2,371 (GBP), more than double the £1,106 (GBP) recorded in parts of Greater London.

Rental returns by location

 

Rental returns by location - Source: Countrywide

Rental returns by location – Source: Countrywide

 

Nick Dunning, from Countrywide, said: “With renting for longer now the norm for many people as they save for a deposit to buy their first home, we are seeing more young families looking to rent cheaper accommodation, hence the increase in demand for smaller rental properties. While prime Central London has seen the greatest fall at 6.3%, this is simply reflecting the fact that in April stock levels in prime Central London were very high compared to last year which benefited from the Olympics. As a result this April, tenants tended to view multiple properties putting in lower offers, which some landlords accepted. However, as demand picks up into the summer, and supply and demand becomes more balanced, the same property could easily rent for more in August than in April.”

Returns by property type

 

Rental returns by property type - Source: Countrywide

Rental returns by property type – Source: Countrywide

 

Source: Countrywide

UK Buy-To-Let landlords experience a stable 3rd quarter of 2012

  • 91% of UK Buy-To-Let landlords think that tenant demand in the UK is either stable or increasing.

    Rental Yields Up, Tenant Demand Up - UK landlords Are Happy!

    Rental Yields Up, Tenant Demand Up – UK landlords Are Happy!

The findings come from the latest Paragon Mortgages PRS Trend survey and a huge number of landlords surveyed reckon that tenant demand was either stable or growing.

  • Only 6% of landlords who took part in the survey said that, in their opinion, tenant demand was declining.

Landlords also reported an average property portfolio size of 12.5 properties in the third quarter. In terms of expectations, landlords anticipate this will increase to 12.9 properties in 12 months’ time.

  • Stable and healthy yields were achieved in the third quarter, with a reported average of 6.2%.
  • Professional landlords achieved a higher average yield than smaller-scale landlords, 6.6% compared to 5.2%.
  • Landlords are expecting to retain a stable yield for the foreseeable future, forecasting an average of 6.2% in 12 months’ time.

68% of landlords who agreed to take part in the survey said that their rental income had remained the same during the third quarter, whilst 27% said that rents had increased, just 5% of landlords had experienced a decrease in rent.

The average void period slightly increased to 2.8 weeks compared to 2.7 weeks in the 2nd quarter of the year, however void periods continue to remain low and have not exceeded three weeks since mid-2010.

Landlords are set to continue expanding their property investments in the final quarter of the year, with 16% planning to expand their rental property portfolios.

  • 58% are expecting to buy flats/maisonettes or terraced houses
  • 30% semi-detached houses
  • 21% are looking to buy detached properties.

John Heron, Managing Director of Paragon Mortgages, said: “It has been a stable quarter for landlords. Yields have remained healthy and at a consistent level for the past 12 months. It is not surprising that landlords are continuing to see high levels of tenant demand and I suspect this will continue into Q4 and the coming year. The PRS is under increasing strain with the growing shortage of homes in the UK, housing policy needs to focus more on motivating private landlords to grow their portfolios to better meet demand.”

There Will Never Be A Better Time To Invest In Property

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