Residential Property Investment has always been the investment of choice for the savvy investor. The UK housing market is consistently at bursting point as shortage of affordable housing is a regular feature on prime time news.
In order for investors to purchase at below market value and gain massive discounts on properties buying off-plan is more often than not the only way forward. When projects are complete the investor often has a choice of selling immediately for quick profit, however it is far more feasible to hold onto these investments and reap rental income, as selling a property is something that can be pursued at anytime. High rental yield and even better appreciation encourages our clients to hold onto their property as it makes no sense to let go of a solid stream of income which could be rising in value every year by as much as 10%. If however you do choose to sell then we are more than happy to do so for you as we know we can re-sell them fast.
As the UK population grows at a rate of around 400,000 per year, all of whom need housing. The increase in demand for homes is a good news for property investors as buyers compete for the best assets. There is also a shortage of good quality rental properties in most areas of the UK, as many people affected by the global financial crisis have since been unable to obtain mortgage financing or simply do not wish to own a home.
Obviously Residential property is required everywhere, however we look at where is the best location from an investment point of view. The ideal location needs a number of elements, firstly locations which struggle to house its current populous, secondly areas with high rental demand and thirdly cities and towns where properties are at an affordable price for the investor. This deadly combination allows for high rental and high tenancy rates.
London for example has very high property prices, but high tenancy rate and struggles to house everyone, meaning London only ticks 2 out of 3, these high prices eat into the rental yield and so often turn away the most savvy investor. However somewhere such as Manchester has high-rental demand, struggles to accomodate its populous and prices are far lower than London. As a result Manchester has the highest average rental yield for the entire UK, bringing an influx of national and international investors. This huge influx has pushed Manchester's economy thus also giving creating very high appreciation for any investors looking to re-sell.