TOP TIPS FOR GETTING STARTED IN PROPERTY INVESTMENT

TOP TIPS FOR GETTING STARTED IN PROPERTY INVESTMENT

Buy-to-Let Property Investment is one of the most lucrative avenues for investment, and every day, more and more people are keen to learn the ins and outs of the property market. When you invest into property, there can be a long list of things to consider. Asset type, location, and price point are some of

TOP TIPS FOR GETTING STARTED IN PROPERTY INVESTMENT

Buy-to-Let Property Investment is one of the most lucrative avenues for investment, and every day, more and more people are keen to learn the ins and outs of the property market. When you invest into property, there can be a long list of things to consider. Asset type, location, and price point are some of the most important. Whether you are looking to make a one-off investment or you’re wondering how to develop a portfolio of property investments, here is our step by step guide to start your journey into property investment.

More and more people are renting instead of buying due to rising cost of property. This has led to a greater demand for rental properties, with a growing need for high-quality accommodation in major cities. For example, in Liverpool, 50% of the population is a young professional, proving the high demand for residential accommodation, while Manchester has over 99,000 students living there, demonstrating high demand for student accommodation.

What is an Investment Property?

An investment property is a property which is purchased in order to generate an income for the purchaser. The two ways investors benefit from making a property investment are with rental returns (these can be monthly, quarterly, or annually), and capital growth generated from the location of a property. This is often fuelled by regeneration projects.

What is a Property Investor?

A property investor is somebody who purchases one or several properties for the purpose of renting them out or selling them for a higher cost.  This can be carrying out as an additional income along full-time employment or as a sole source of income.

Capital Growth vs Rental Return

What is Capital Growth?

Capital growth, also known as capital appreciation, refers to the increase in the value of a property investment over a period of time.

Many investors who aim to achieve capital appreciation invest in off-plan residential developments for the potential of continuous growth. These investors often have a long-term strategy to achieve an increase in value during the construction period, with further growth upon completion. When selecting a property for long-term gain, there are a few factors to consider:

Regeneration: Purchasing a property in areas undergoing regeneration, funded by the local council or government is an excellent way to achieve capital appreciation. UK properties undergoing substantial local investment include Birmingham with its £750m Birmingham New Street Station redevelopment, Manchester, which has seen over £1.6 billion invested via the Northern Powerhouse Initiative, and areas along London’s commuter belt such as Luton and Slough experiencing millions of pounds worth of regeneration. As a result of this, demand for these areas is skyrocketing, allowing the property value to increase.

Regeneration drives capital growth of properties, so transformations to infrastructure, city centre renovations, education and commercial spaces have the potential to provide a limitless value to properties. Often, this tends to happen in the city centre’s to drive the area’s economy across the tourism and hospitality industries.

Transport Infrastructure: The UK government is investing billions of pounds in the country’s transport infrastructure, heavily transforming the country’s connectivity.  The pending arrival of the HS2 High-Speed Rail will be the fastest rail system in Europe, while the new Crossrail route, named the Elizabeth line, will run from Reading and Heathrow in the West, under London through to Shenfield and Abbey Wood in the east.  For investors seeking properties with capital appreciation potential, the quality of infrastructure should be a major consideration. Tenants are drawn to properties in close proximity to transport links, so any opportunity to take advantage of the transport regeneration will prove profitable.

Properties located in areas undergoing substantial infrastructure investment such as the HS2 High-Speed Rail that will connect London to Birmingham in only 49 minutes, or areas along the new Crossrail route such as Slough will experience an increase in property value the closer these projects get to completion.

What is rental yield?

Rental yields signify the rate of return from an investment over an annual basis. This can be an estimation or an assured percentage for the investor. For example, a 10% yield on a £100,000 property equates to £10,000 that the investor makes every year on their property investment. When selecting a property for rental returns, there are a few factors to consider:

Property Management: An important factor to consider when focusing on rental yield strategy is the management of the property. This is especially important for overseas investors. It is advisable to identify a property that offers a fully managed service. This allows investors to enjoy their passive income without the hassle of managing the day-to-day running of the property and finding tenants themselves. For the freedom of not dealing with the numerous tasks of being a landlord, a small percentage of the annual rent will be charged towards property management.

Supply vs Demand: Before determining the return on investment for a rental property, consider the supply and demand levels for the market you are pursuing. For example, despite high demand for accommodation in London, this doesn’t equate to high rental yields. Many tenants are being priced out to commuter belt locations and regional cities, meaning the capital is only beneficial for capital growth. As a result of this, many young professionals are moving to thriving northern cities including Manchester, Liverpool and Birmingham for its employment opportunities and affordable living costs.  For those moving within England, Birmingham, as the fastest growing city in the UK, is the most popular destination offering larger living spaces and increased employment opportunities. Its advisable for investors to identify cities experiencing population growth next to solid employment sectors.

Can I achieve both?

For many investors a combination of strong capital appreciation and strong rental yields is important. Fortunately, the UK property market is unique in the fact that it offers investment opportunities with potential for capital appreciation and rental returns.

Can I invest in property?

The most lucrative way to invest in property is through buy-to-let instead of buy-to-sell. Buy-to-let is where a property is purchased with the intention of the owner letting out the property. This offers investors a regular rental return, sometimes rivalling the income accumulated from full time employment.

What are the benefits of property investment?

  • A great avenue to generate additional income. While some investors are able to solely earn money as a property investor, many investors continue to work in another occupation. This allows a property investment to provide a bonus income, providing financial flexibility. In many cases, buy-to-let properties act as a hands-off investment so the investor wouldn’t be required to manage the property.  This is ideal for property investors who live busy, day-to-day lives involving work, family and commitments who don’t have the time, effort and means to manage a property themselves.

 

  • Regular Income. Due to the increasing cost of property, many would be homeowners are continuing to live as tenants in the private-rental sector. This is a trend that is expected to rapidly increase with almost a quarter of the population in this situation by 2021. For this reason, there is a high demand for rental property and therefore a high demand for property from a Buy to Let rental perspective. Investors typically receive their rental returns on a monthly basis, although this can be quarterly or even annual depending on the type of investment i.e. residential or commercial.

 

  • Lucrative alternative to pension during retirement years. Diversifying your sources of income can a strategic method to ensure a stable and steady income during your retirement years. The high rental demands up and down the country means rental properties will always be desired by tenants. The regular income attained by a buy-to-let property can be highly profitable allowing investors to enjoy a comfortable life during their retirement, instead of solely relying on their state and work pension.

What are the risks of investing in property? How can I mitigate these risks?

  • Loss of value. Property value can both increase and decrease, so there is the possibility that the value of your property may be less than what you paid for it. Buying in a good up-and-coming area with plenty of redevelopment happening normally leads to selling your property at a higher price. This is why it pays to do your due diligence before investing to ensure your property will not go down in value.

 

  • Void Periods. There is a risk that your property may not always be occupied with tenants. For example, if tenants lose their job by way of redundancy, this may make them unable to pay their rent. New build properties typically attract a good quality of tenant in a relatively stable and secure job because of the slightly higher price. This usually keeps void periods to a minimum.

 

  • Tenant Issues. There is always the risk that a tenant could inflict damage on your property. This could cause significant financial loss to repair any damage or pursing legal action to evict them. Assigning a reliable managing company to let out your property means they will do the necessary vetting process for a good tenant that won’t damage your property.

 

How do I buy an Investment Property?

If you want to purchase a buy to let investment property, you can either do this by paying the property’s price in full or with a buy-to-let mortgage. This will largely depend on the type of property you want to invest in and the property investment company you use.

EXPLORING DIFFERENT PROPERTY INVESTMENT STRATEGIES

Before considering all the steps involved with property investment, an investor needs to establish the best buy-to-let strategy. The most common types of buy-to-let property investments are residential and student property investments, but hotel rooms and care home suites are becoming more popular for their hands-off nature. Firstly, we have:

Traditional Buy-to-Lets

Traditional buy to let is when an investor purchases a residential property which they will let out to tenants to regularly generate an income. Those who opt for a traditional buy to let investment strategy are likely to purchase an apartment rather than a house due to the lower costs and higher demand, especially in city-centre locations.

The reason why this is often considered the best buy to let strategy and the best way to invest in property is because of the benefits involved. When you do the appropriate research and planning, traditional buy to let can provide you with regular returns through high rental demand. With this type of investment, you’re also more likely to benefit from increased capital growth potential, providing you with an attractive return on your investment when you decide to sell the property.

See our residential properties here.

Download our buy-to-let guide here

Commercial Buy-to-Let

Student Property Investments

Student property is one of the best investment options for those after regular, sustainable rental returns. The rising number of students pursuing higher education of over 2 million, including international students, has increased demand for student accommodation which universities are under supplying. As a result of this, purpose build student accommodation (PBSA) is thriving, to the benefit of a property investor.

Student numbers are soaring: Despite increasing tuition fees, there are more young people entering further education than ever. As of 2020, the UK has over 2.38 million students, of which, JLL predicts there will be a further 500,000 full time students by 2030. This will be driven by the continued increases in 18-year olds from 2021, a moderate increase to participation rates and demand from international students.

Universities are not meeting the demand for student accommodation: Traditionally, students would stay in halls of residence at the university in which they studied. But with the soaring demand, there simply aren’t enough rooms available on campus. Many universities now only allow first-year and international students to stay in their halls of residence. Despite this, many international and first-year students won’t get a room due to availability. They are turning to property in the private sector for residence as a result.

Purpose-built student accommodation (PBSA) attracts high demand: PBSA property provides all of the quality on-site amenities associated with student halls of residence. For example, there are common rooms, reception areas, WiFi, laundry rooms, and study areas in addition to being in close proximity to the university. This attracts the high demand, providing high occupancy periods over a long-term period.

Possibility of long-term tenants: Besides the minimum 3 year period most students will study at university, many students take gap years, do a Masters degree or do specialised courses that require them to stay at university for longer. Beyond this, there is always a fresh influx of students every year in the UK, so there is always a demand for student property- more so towards the PBSA sector than ever before.

See our student properties here.

Download our student guide here

Care Home Room Investments

The UK’s aging population has made care home room investments one of the most popular forms of property investment, allowing a steady and secure rental return to be received by investors. Financially backed by the government and highly regulated by the Care Quality Commission (CQC), care home rooms provide extra security and peace of mind for the investor.

Financial Incentives: The price of care home rooms in comparison to residential apartments or houses is significantly lower. Therefore, yields are high on property in this sector, and with many care home operators installing buyback options with uplifts on the initial purchase price, there are added capital growth incentives to consider.

Maintenance Included: The maintenance of the property is handled by the care home operator, in addition to finding tenants. This makes this investment hands-free and therefore allows the investment to act as a passive income with steady rental income on a long-term basis.

Local councils obligated to populate care homes: As the UK’s population gets older, more and more people need care in their communities. As such, regional councils have an obligation to fill local care homes with people that need care. Because of this, care home occupancy levels are consistently high with 80% on average provided for by local councils. There is therefore little worry from the investor’s perspective that their purchased room will not be occupied on a consistent basis.

See our care home room investments here.

Hotel Room Investments

Hotel property investments functions in a similar fashion to care home room investments. The investor purchases a room within the building, leases it back to the operators who run and manage it on the investor’s behalf, and pays them stipulated returns as agreed.

One of the main reasons that some people consider hotel investments as the best property investment strategy is the fact that you are able to generate high rental yields due to the cost of hotel stays.

Passive Income: Being part of a hotel, a hotel room is cared for by the hotel management company. This includes marketing the property, taking bookings, conducting exit checks and ensuring the room is keep clean. This means as an investor, you wouldn’t be required to take part in any of the maintenance work for the unit, allowing you to collect your rental yield without any hassle. Unlike a residential property, there are no extra costs to pay such as ground rent, allowing your income yield to be higher than on a traditional buy-to-let property.

Viable for a pension: Hotel room investments are considered a commercial property investment so, unlike a residential property investment, can be held in a self-invested personal pension.

See our hotel investments here.

What is the Best Type of Property to Invest in?

When trying to decide on the best way to invest in property, you should think about your main goals for buy to let and whether or not each strategy reflects them. For example, if your main goal is to obtain capital growth on your investment, then a residential buy-to-let in an area undergoing major redevelopment/regeneration may be your best option. However, if you are more driven towards a higher rental yield and sustainable returns, then student property is ideal. For those who want an investment in a total hands-off capacity, then hotel and care home rooms fit the bill.

Understanding what you want to get out of your prospective investment is key before deciding what you want to pursue. Of course, knowing whether or not your cash budget fits your ideal investment is important too!

Think About the Right Time to Invest in Property

On a personal level, the right time to invest in property is when you have enough money available to do so! Being financially stable is one of the most important things to consider before you go ahead with an investment, so make sure you take the time to fully assess your finances before beginning your buy to let journey.

When investing in the UK property market, the best time to invest in property is when the market is at its highest-performing level. The key thing to remember is that the gap between supply and demand regarding property in the UK is still massively wide. We are simply not supplying enough property to satisfy the growing demand. Prices naturally rise as a result and have done so consistently in this country for decades. External factors can affect this of course and have done so over the years, i.e. 2007 global recession, changing governments, Brexit, the ongoing coronavirus pandemic etc, but UK property has proven resilient to this throughout and, despite these short term roadblocks, continued to increase in value.

UNDERSTAND YOUR TENANTS PROFILE: STUDENT VS RESIDENTIAL

An important factor in attracting tenants, is identifying who your target tenant is. If you are interested in investing in student property, it’s important to identify which cities have a large student population and demand for student property such as Newcastle and Sheffield and identify what these tenants will want from a property such as close proximity to a university, transport links, Wi-Fi and laundry facilities. However, if you prefer residential developments, its equally important to find properties in close proximity to transport hubs, leisure facilities and trendy districts.

By identifying your ideal tenant and their demands, you can purchase a property that can meet up to expectation. For example, while a residential investment may perform well in a commuter town, a student property probably would not.

Student Tenant

The UK’s world-class reputation for education has led to huge demand for student beds currently not available in university provided accommodation, leading the private sector to pick up this demand and allow oversea investors to benefit from student property.

Tuition fees are at an all-time high and alongside that university accommodation costs and rental yields are rising too. The high prices have led students to increase their expectation out of student property, allowing student property investment to be a lucrative asset. The steady demand and high rental yields means student property is one of the safest assets to invest in.

Residential Tenants

Cities are seeing a rise in young professionals living and working in the city centre making residential profitable business for an investor seeking high rental returns. For residential properties, location defines the type of tenant you will have. For example, a single young professional may seek a 1-bed room flat in the city centre and be looking for a long-term let. In fact, apartments in and around major city centres have a very wide demographic with young working professionals, students, couples and even small families being your ideal target market for this kind of property.

FINDING THE BEST PROPERTY INVESTMENT LOCATION IN THE UK

When investing in the UK, it is vital to consider location before committing to a purchase. Things to consider when looking at location are capital growth, population, education, rental yields and purchase price.

 

 

Manchester

Manchester is a thriving beacon of sport, education, culture and business. Located in the heart in the Northern Powerhouse, Manchester has been transforming the former industrial city into a creative and tech hotspot to rival London, ultimately rising demand from students and young professionals.

See Manchester properties here.

Birmingham

The fastest growing economy outside of London, Birmingham’s extensive regeneration including the New Street Train Station preparing for the arrival of HS2 High Speed Line makes the midland city one of the UK’s best opportunity for property investment. Placed in the Midland Engine, Birmingham continues to experience rising demand, of which Knight Frank forecast prices to rise by 12.5% by 2022.

Boasting a population of 1.2 million, Birmingham’s average yields reached over 5% in 2019 according to PropertyData. With construction for the Commonwealth Games 2022 Village starting expected to take place in 2020, in addition to the infrastructure implemented to harness 5G technology.

See Birmingham properties here.

Liverpool

Due to the rising young population and increasing tenant demand, Liverpool stands as one of the strongest investments in the UK. JLL expects that property prices in central Liverpool to rise by 2% throughout 2020 greatly influenced by the extensive regeneration including Liverpool ONE, the largest open-air shopping centre in the UK. The Liverpool Local Plan indicates the city has nearly £14 billion worth of regeneration projects in progress, including the £5.5 billion redevelopment of Liverpool’s waterfront. PropertyData revealed Liverpool to be one of the highest performing buy-to-let hotspots in the UK reaching an average of up to 8.2%.

See Liverpool properties here.

Leeds

With a population growing seven times faster than London, Leeds is driving extensive demand throughout the Yorkshire city. The city’s £7 billion redevelopments plans are a key driver for Leeds, which has seen major companies including HMRC, NHS and Channel 4 relocate to Leeds. The regeneration of the South Bank area will aim to double the size of Leeds city centre, delivering a space equivalent to 350 football pitches, providing over 35,000 jobs and 8000 homes.

See Leeds properties here.

London

London is the most visited city in the world and home to over 9 billion. The thriving tourism and industry and large population, along with the capital city’s reputation as a Financial and tech hub, has led many businesses to locate here for opportunities and talent pool. As an investment, London offers fantastic capital growth for the extensive regeneration including Canary Wharf, Battersea Power Station and Elephant & Castle.

See London properties here.

The extensive regeneration in the northern cities, impacting the rising capital growth in the core cities of the Northern Powerhouse means major cities such as Manchester and Liverpool make a lucrative alternative to the highly priced properties in London.

DECIDE BETWEEN OFF-PLAN AND REFURBISHED PROPERTIES

When investing in a property, an investor needs to consider the build of the property. The most popular builds are off-plan and refurbished properties.

OFF PLAN PROPERTY

An off-plan property is a property which is currently being constructed, but units are available to purchase before completion. You are literally buying the property “off the plans and designs” rather than the physical building which is still under construction. Developers will give a targeted completion date for the finish of the property for you to find a tenant and start earning rental returns.

Advantages of Off-Plan Properties

  • Capital Growth: Off Plan Properties allow investors to purchase at a lower price before completion. Upon completion, the capital growth allows investors to enjoy a higher property value than the amount they initially paid. This can be translated into rental returns, or an investor can sell their investment and receive a profit on the original price.

 

  • Select a unit to your specification: An off-plan property allows the investor to tailor their investment requirements instead of taking simply what is available. Everyday new properties are being constructed to cater to the innovative needs of tomorrow’s world meaning off-plan properties include everything from energy efficient technologies to state-of-the-art gyms heightening demand for prospective tenants.

 

  • Regional Growth & Regeneration: The ongoing regeneration across the country means an off-plan property investment stands to be at the forefront of growing towns or cities prime for redevelopment and inward investment. The ongoing regeneration occurring in the local area means by the time the property is completed, they will benefit from the completed regeneration projects and still be in a great position to benefit from future projects in the process of completion.

 

  • Tenant Demand: New-build developments are designed to answer the ever-evolving demands of the housing market. Offering more facilities including on-site gymnasiums, landscaped gardens, and a 24hr concierge service is attracting a high tenant demand in anticipation of the completed property. This minimises the chances a property will experience void periods.

 

  • Low Initial Capital Outlay: While a deposit is made to secure the property (usually 10%), the entire payment doesn’t need to be paid until the property has been built. This allows investors to organise their finances to complete the payment.

 

  • Build guarantee: Newly built properties come with a 10-year build guarantee which means structural or interior building faults must be repaired by the builder.

How to secure a high rental yield

To achieve the highest rental yields, there are a few factors to consider:

Asset Type

Typically speaking, the lower the price of the property, the higher the rental yield is. This is why yields are lower on residential property in cities like London due to the high property prices there. A high yield can be obtained on residential property in other locations, but for those looking to prioritise a high yield, student, hotel and care home investments are the better choice.

Location

Location is fundamental in gaining high yields from an investment. As mentioned, the cities in the UK with the highest property prices, i.e. London, Birmingham, parts of Manchester etc have comparatively lower yields than in most other locations. These cities are better targeted for their capital growth potential rather than high rental yields.

Cities experiencing huge redevelopment combined with low enough property prices to obtain a high rental yield include Liverpool, Sheffield, and Leeds. For example, Liverpool’s Albert Dock is set to be completely transformed into a thriving economic hub in the coming years with Canary Wharf in London being the template for this. Whilst this redevelopment is happening, investors are snapping up property in and around this region whilst prices are still comparatively low. This means they are securing a high rental yield in the short term, but also excellent capital growth potential in the long term.

Demand

A substantial demand is imperative in order to receive high rental yields. For example, a report from Knight Frank revealed almost a quarter of the population will be privately renting by 2021. This is approximately 16.5 million people who will require a property to rent. With demand like this, investing in a location that capitalises on said demand will secure you a long term rental income that keeps void periods to a minimum.

LOOK FOR PRICE GROWTH AND ESTABLISH AN EXIT STRATEGY

Considering what the property value will be in five or ten years from point of purchase will affect how successful a property investment will be. Property company JLL have in fact predicted that Manchester’s capital growth will reach 28.2% between June 2017 and June 2021. Combine this with the rental income investors have received over this period, and it has provided a significant return on investment over a 4 year timeframe.

Exit Strategy

An exit strategy is a plan in which the property investor intends to sell their purchased investment. Establishing an exit strategy is vital to determine the optimum time to sell and reinvest the proceeds. Doing so will allow the investor to stay focused on their financial goals.

An exit strategy may be a personal strategy based on yields or capital value.  If at the end of the rental period or when the property has achieved a certain level of capital growth, an investor may consider selling to take advantage of this. Under these circumstances, it is advisable to consider the best time to sell the property.

However, if an investment is being sold after a period of time, this may be as part of the contract with the developer, for them to buy the property back.  If a developer offers an exit strategy, these will be time based and often comes with a financial uplift.

See properties with buy-back strategies here.

Stamp Duty Explained

Residential property

When purchasing non-residential property in England or Wales, an investor is obliged to pay Stamp Duty Land Tax (SDLT) – a tax levied on property transactions and payable to the Inland Revenue. As it stands in August 2020, a first-time residential Buy to Let purchase for an investor has a minimum threshold of £500,000. This is set to revert back to £125,000 on April 2021. Purchasers buying their second or more property will incur a 3% Stamp Duty rate.

When purchasing non-residential property in England or Wales, stamp duty will occur on assets above the value of £150,000, as it currently stands.

You are required to pay Stamp Duty on non-residential assets whether a freehold, new, or existing leasehold property.

The rates are as follows:

Property or lease premium or transfer valueSDLT rate
Up to £150,0000%
£150,001 to £250,0002%
More than £250,0015%

PLEASE NOTE: As of 1st April 2021, non-UK residents purchasing residential property in England and Northern Ireland will pay a stamp duty surcharge of 2%.

It is important to factor this in to make sure a purchase price is feasible to carry through to completion.

STEP 10: CONTEMPLATE A BUY-TO-LET MORTGAGE

A buy-to-let mortgage is a mortgage sold specifically to people who buy property as an investment, rather than as a place to live.

Most borrowers take out an interest-only mortgage for their chosen property. They then only pay the interest on the loan as it accrues every month, generally from the proceeds of the rent they collect. The capital debt (the full amount of the mortgage) is paid at the end of an agreed term. Buy to Let mortgages typically require a 25% deposit with the remaining 75% obtainable through the mortgage.

Advantages

  • You pay only a portion of the property price rather than the full amount.
  • The cost to purchase has led to many people needing rental properties with almost a quarter of the population predicted to be privately rented accommodation by 2021. This creates a high demand for rental properties making a buy-to-let property a profitable investment.
  • A buy-to-let mortgage enable those with limited cash budgets to get their foot on the property ladder.

Disadvantages

  • Increased stamp duty: In April 2016, the Government introduced a 3% surcharge for any additional property purchase.
  • Rental Voids: It is possible that a landlord will experience a period of rental void in which the property is unoccupied. You can minimise these void periods by buying in areas with plenty of demand.

What happens at the end of the mortgage?

Once the interest-only deal ends, the investor will still be expected the pay off the cost the property at the time it was bought. Often landlords do this by selling the property and therefore paying it off. Most investors then choose to reinvest the proceeds into another property investment and follow the same cycle.

ALWAYS CONDUCT THOROUGH DUE DILIGENCE

What is Due Diligence?

In the case of property investing, due diligence requires looking at what a property itself can offer, the benefits and drawbacks of the location and the demand the property has. It’s important to carry out proper due diligence to ensure you are completely happy with your property investment and to ensure there are no surprises later on down the line.

The extent of due diligence will depend on the property value and the buyers existing knowledge of the property market, but overall property due diligence typically involves:

  • Enquires into the background and experience of the developer, construction and management company of the property.
  • A physical inspection of the property.
  • A valuation of the property.
  • Reviewing the stability of the rental income stream and property management arrangements.

Why undertake due diligence?

Investing in a property is a sizeable financial commitment, so it’s in the investors best interest to carry out as much research. Any investor should undertake due diligence to:

  • Verify details provided about a property investment opportunity (e.g. unit sizes, property price, proximity to local amenities).
  • Analyse any risks of the proposed purchase (e.g. developer’s track record, insurance measures etc).
  • Prove the accuracy of information provided (e.g. demand for care homes, student population, private rental market).
  • determine any outstanding issues which may prevent the purchase being completed (e.g. construction company are unable to complete property, developer isn’t given required permits).

When should due diligence be undertaken?

Due diligence concerning a property investment should be carried out when the terms of purchase have been agreed upon, but prior to contacts being signed.

The date of due diligence could be influenced by:

  • Type of property and its planned use
  • Number of properties being bought
  • Cost of properties
  • Location of properties being acquired
  • The reputation of the developer
  • Whether financial assistance is required
  • If the investor is allowed access to the property

Tarquin Jones are dedicated to sourcing the best developments for our clients in order to deliver a valuable service with respectable returns and capital growth. Although with any property investment there is always an element of risk, we carry out a thorough process of due diligence to mitigate such risks.

Our approach focuses on four main areas:

Wealth Creation through property Investment sourcing:

  • Focus on growth areas
  • Focus on off-market opportunities
  • Each property comes with extensive research

Investment Strategy:

  • Set returns/income objectives
  • Determine capital investment
  • Establish Strategy

Active Portfolio Management:

  • Construct Portfolio Plan
  • Implement income generating initiatives e.g. rent management, value creation etc.
  • Drive effective Portfolio Management

Exit Strategy:

  • Identify optimum timing for asset disposal
  • Manage asset disposal process

GET INVESTMENT PROPERTY ADVICE FROM EXPERTS

When you’ve researched into the different asset types, the opportunities the location has to offer and completed your due diligence, its crucial to learn more about property investment from an expert who can advise you how to get the most out of your property venture.

Where to get Property Investment Advice

The best place to receive advice regarding property investment is from a property investment company. Some people go on courses to educate themselves about property investment, but most of the information they relay can be found online if you know where to look at no cost. Any credible Property Agents can discuss different investment rental returns, types of properties, buy back strategies, additional fees, demand and more, in order to advise you on opportunities to suit your financial capabilities and help you reach your property investment goals.

What does a Property Investment Company do?

Property investment companies source investment opportunities from different developers across the UK and help potential investors find the best opportunities that fit their needs. Investing with a reputable and experienced property company means you benefit from their expert advice and enjoy their customer service.

Whether you’re a first-time investor or an experienced investor interested in branching out to a new sector, Tarquin Jones will be able to give you some clarity on what the process involves and what you can expect to gain from a property investment.

STEP 15: CONSIDER EXPANDING YOUR PROPERTY PORTFOLIO

Once you have made your start in property investment, the next step to ensure large returns is to start building a property portfolio. The most effective way to do this is by making your portfolio as diverse as possible. Doing so, can help you minimise risk and significant increase your cash flow. For example, if all of your property portfolio consists of residential property and adverse market conditions arise that negatively affect residential property, then your entire portfolio is going to suffer. Whereas, if you own property in residential, student, care home, hotels and other commercial sectors, then you are spreading your assets and ensuring that if one property sector takes a hit, then you are earning cash flow through the others in the meantime.

How can Tarquin Jones help me with this?

At Tarquin Jones, we specialise in delivering innovative UK property investment solutions, including residential buy-to-let, student accommodation and other commercial investments, such as hotel rooms, care home suites and other commercial investments for our global client base.

With over forty years’ experience generating property investment assets, we provide simple and powerful property investment solutions, driven by sound market fundamentals, designed to achieve financial freedom, security and a legacy for you and your family.

Regularly working with both first-time investors as well as seasoned investors, our goal is to increase wealth and value, focusing on creating an intelligent creation of wealth through property investment, regardless of our client’s location.

At Tarquin Jones, we provide ourselves in offering vigorous investment opportunities with a customer-driven focus. We provide a full end-to-end service, from introducing investment opportunities to completion of sale. To provide convenience to our clientele, our approach is simple, clear and very effective property investment solutions based on sound fundamentals through thorough in-depth research.

This comes to the end of our tips for property investment, from choosing between student property and hotel property to carrying out due diligence and financially factoring in stamp duty. If you’re ready to start your property investment portfolio or need some more information from our team of Sales Agents, get in touch with us at info@tarquinjones.com. In the email time check out some of our most promising property investment opportunities across the United Kingdom.

 

                                       

 

info@tarquinjones.comTOP TIPS FOR GETTING STARTED IN PROPERTY INVESTMENT
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5 Reasons to Invest in Liverpool

5 Reasons to Invest in Liverpool

The Pool of Life Liverpool, the northern city of culture is thriving by the minute. Home to numerous higher educational institutions, a beautiful sky view and Liverpool FC’s the Reds, Liverpool continues to grow in population, from young professionals, students and businesses setting up in the northern city. With its thriving economy, Liverpool is a

5 Reasons to Invest in Liverpool

The Pool of Life

Feature Image

Liverpool, the northern city of culture is thriving by the minute. Home to numerous higher educational institutions, a beautiful sky view and Liverpool FC’s the Reds, Liverpool continues to grow in population, from young professionals, students and businesses setting up in the northern city. With its thriving economy, Liverpool is a fantastic city to invest in, boasting one of the highest rental yields in the country.  We’ve picked out our top investments in the city.

Natex

  • 9% NET rental return for 5 years
  • Prices from £67,500
  • Completion: Q3 2020
  • 566 units in 2 blocks: 472 clusters and 94 studio apartments
  • Central Liverpool location
  • Close proximity to 6 universities, 2 train stations, and 1 major shopping centre
  • Includes a resident’s café and game room

 

 

 

 

 

 

 

 

Fabric Village 

  • Prices from £98,500
  • Estimated 7% rental yield for 3 years
  • 449 studio apartments, one-bedroom, and two-bedroom apartments
  • Completion: Q4 2019
  • Leasehold: 250 years
  • Located in Knowledge Quarter
  • Within 10 minutes to Liverpool One Shopping Centre, Liverpool Waters and Lime Street Station

 

 

 

 

 

 

 

 

 

AURA 

  • En suite from £62,950
  • Studios from £77,950
  • 8% NET yields assured for 5 years
  • Leasehold: 250 years
  • Completion: Q3 2020
  • 702 cluster en-suite rooms and 305 studios.

 

 

 

 

 

 

 

 

 

 

The Rise 

  • Prices from £67,400
  • 7% NET rental yields guaranteed for 5 years
  • Completion: Q3 2019 (student) Completion: Dec 2019-Q1 2020 (residential)
  • Leasehold: 250 years
  • Located in the progressive Knowledge Quarter

 

 

 

 

 

 

 

 

 

 

 

The Tannery 

  • 6% NET return for 3 years
  • 5% interest on deposited funds
  • Prices from £85,000
  • 381 studio apartments, one-bedroom, and two-bedroom apartments
  • Leasehold: 250 years
  • Ground Rent: £300
  • Completion: Q3 2019 (Block C), Q2 2020 (Block B)
  • Central Liverpool location

 

 

 

 

 

 

 

 

 

Interested in seeing more Liverpool properties? Email us at info@tarquinjones.com for more details.

info@tarquinjones.com5 Reasons to Invest in Liverpool
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Why the cool kids of property are falling in love with Middlewood Locks regeneration…

Why the cool kids of property are falling in love with Middlewood Locks regeneration…

Manchester never fails to impress, from sport and theatre to entertainment and property. Demand for the rainy city is seeing property value increasing by 29.22%, thanks to the rise in people heading to Manchester for the growing job prospects. The regeneration plans have completely reinvented the city, with new neighbourhoods evolving to meet the growing

Why the cool kids of property are falling in love with Middlewood Locks regeneration…

Manchester never fails to impress, from sport and theatre to entertainment and property. Demand for the rainy city is seeing property value increasing by 29.22%, thanks to the rise in people heading to Manchester for the growing job prospects. The regeneration plans have completely reinvented the city, with new neighbourhoods evolving to meet the growing demand. Middlewood Locks, an exciting new neighbourhood by Salford Central railway station is the biggest scheme of regeneration in the Manchester area.

Community

Cleverly located by the waterside, Middlewood Locks offers the serenity of suburbia with the excitement of city life, an innovative place of business and a new location for shops, hotels, restaurants and bars, public open spaces, only ten minutes away from Spinningfields. More than just a neighbourhood, the £1 billion regeneration, Manchester’s most vibrant, and soon to be the favoured place to live among young professionals and growing families, is a lifestyle compiling of amenities including a gym, bar, nursery and medical centre.

Green Space

In the clean and open spaces featuring nature trails and cycle paths, Middlewood Locks offers relaxing greenery by the beautiful canal. Complemented by the beautiful trees, the park life will be a welcome calmness from the hustle and bustle of city life, operating at a slower pace.

Transport

The attractive 24.5acre site offers the gift of transportation with Manchester City Centre within walking distance and main transportation links only a mile away. The local area offers a host of developments coming from source including The Greengate Generation to revive 13 hectares in order to reconnect the historic centre of Salford with Manchester’s modern vibrancy. Additionally, Irwell River Park is creating an international waterfront destination providing a range of environmental improvements for sustainable transportation in addition to commercial and residential development.

A place to call home.

A place to live, work and relax, Middlewood Locks, plays host to Middlewood Plaza, an impressive development featuring split-height blocks of six and nine storeys, with a total of 125 homes across the site.

 

  • Smart technology included as standard, for a future-proofed development
  • An appealing mix of apartments, townhouses and duplexes
  • High-quality kitchens and bathrooms included as standard
  • Secure underground parking
  • Dedicated cycle bays
  • Fully wheelchair accessible apartments
  • All apartments serviced by fully maintained lifts
  • Whole-house ventilation and sprinkler system protection
  • Private roof terrace access for all residents

 

As an investment, Middlewood Locks is showcasing the future of property: a combination of the quietness of suburbia and the cosmopolitan of the city. Middlewood Locks is the answer for the accommodation needs of the Manchester urban professional. Mixing luxury living spaces with close-knit amenities means the demand for tenancy will be high upon completion.

For more information about Middlewood Plaza, please call (0)20 8445 6542 or email info@tarquinjones.com

 

info@tarquinjones.comWhy the cool kids of property are falling in love with Middlewood Locks regeneration…
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Neighbourhood Watch: West End, Glasgow

Neighbourhood Watch: West End, Glasgow

The West End: Glasgow Famous for its stunning Victorian architecture and thriving cultural scene, Glasgow’s West End, named “the hippest place in the UK” by The Times and as one of the “top ten coolest neighbourhoods in Europe” by The Independent, is a hotspot for young and mature professionals working in the city and students attending

Neighbourhood Watch: West End, Glasgow

The West End: Glasgow

Famous for its stunning Victorian architecture and thriving cultural scene, Glasgow’s West End, named “the hippest place in the UK” by The Times and as one of the “top ten coolest neighbourhoods in Europe” by The Independent, is a hotspot for young and mature professionals working in the city and students attending Glasgow University.

Greenery

Kelvingrove Park

In the heart of Glasgow’s creative scene, nature is a key attraction of the West End. Kelvingrove Park is a relaxing Victorian park featuring tennis courts, a skatepark and a restored Kelvingrove Bandstand, home to the Summer Nights mini music festival that brings open-air music back to the park.

Education

University of Glasgow

Over 26,000 students attend University of Glasgow for its prestigious education. Designed by George Gilbert Style, the Gothic revival architecture of the main building is a stunning architectural masterpiece. Described as the real-life Hogwarts, the University of Glasgow has been featured in productions including Cloud Atlas and Outlander.

Culture

Scottish Ballet Company

The West End offers a vibrant cultural scene, stimulating many professionals, families and students to live in the area and effectively has encouraged businesses to operate here. The top attractions include Kelvingrove Art Gallery, Riverside Museum and Clydeside Distillery.

The performing arts reigns supreme in the district boasting Kings Theatre showing productions including The Rocky Horror Show, the Scottish Ballet Company and the majestic Glasgow Royal Concert Hall.

Nightlife

Brel

As the bohemian district of Glasgow, the West End is home to some of the city’s most innovative spaces, cool events, creative people and prettiest streets. To complement this, the variety of unique bars are within easy reach. Brel, voted best beer garden of Glasgow in 2016 and The Parlour, home of the quirky cocktail are among the top favourites of the local community.

Cuisine

Tantrum Doughnuts

Known for its trendy cuisine, the West End offers a host of innovative eateries. From The 78, a dog-friendly vegan bar to Michelin Bib Gourmand awarded Ox and Finch. Taking fine dining to a new level of service, Six by Nico is one of Glasgow’s hotspot restaurants. Every six weeks, the restaurant changes its menu to a completely new theme, comprising of six delicious courses. Additionally, the dessert eaters will be well catered to at Tantrum Doughnuts with amazing hand-made doughnuts.

Tourism

West End Festival

Living up to its reputation as a cultural beacon of Scotland, the West End hosts several events including the annual West End Festival in June celebrating the local community and Glasgow Mela Festival, where visitors can experience Scottish music and dance in Kelvingrove Park, which always attracts lots of top performers from around the world alongside some mouth-watering food stalls too.

A Final Note

As the second largest economy in the UK, Glasgow is a thriving city set to benefit from over £16 billion of regeneration to strength the life sciences and transport industries. Proving to be a powerhouse outside of London, the West End’s bohemian reputation makes it’s a beacon for investment opportunities of residential, commercial and student properties.

Ready to see Glasgow properties? Email us at info@tarquinjones.com for more details.

 

 

info@tarquinjones.comNeighbourhood Watch: West End, Glasgow
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Neighbourhood Watch: The Creative Quarter, Nottingham

Neighbourhood Watch: The Creative Quarter, Nottingham

The Creative Quarter, Nottingham An environment for creative and digital businesses to thrive, The Creative Quarter is Nottingham’s number one choice for students, investors, locals and visitors to learn, live and leisure. Education Ranked the sixth best student city, Nottingham produces 19,700 graduates each year with 32% of Nottingham’s population hold a degree-level qualification.  The

Neighbourhood Watch: The Creative Quarter, Nottingham

The Creative Quarter, Nottingham

An environment for creative and digital businesses to thrive, The Creative Quarter is Nottingham’s number one choice for students, investors, locals and visitors to learn, live and leisure.

Education

Nottingham College City Hub

Ranked the sixth best student city, Nottingham produces 19,700 graduates each year with 32% of Nottingham’s population hold a degree-level qualification.  The Creative Quarter is home to Nottingham Trent University, Nottingham College and the Confetti Institute of Creative Technologies.

Nottingham Trent University was ranked #1 University in 2017 by Times Higher Education whilst Nottingham Business School has this year being shortlisted for Times Higher Education Business School of the Year. The district has a steady flow of first-class talent with up-to-the-minute skills.

Nottingham College’s £58 million City Hub regeneration demonstrates a grand investment in the city’s education. It will offer new facilities and resources for college students and provide community facilities such as a new café and performing arts centre. The neighbouring area to set to provide and open and green space for the community and the College is working with the council to ensure the area and surrounding through-routes are well lit and accessible, helping to create a good flow between this area and the rest of the city centre.

Business

Digital Marketing Company

Nottingham boasts a talented workforce of over 1.1 million, leading the way for knowledge intensive industries including financial and business services, creative and digital, life sciences and advanced manufacturing., of which employ 60% of Nottingham.

The Creative Quarter is a stand-out feature of Nottingham’s creative and digital sector considered ‘incubator without walls’ offers everything from unique businesses spaces, co-working hubs along with independent retails, bars and restaurants. From the two universities, businesses have a large talent pool of 29,000+ creative and digital students.

Regeneration

Broadmarsh Shopping Centre

Nottingham is currently embarking on commercial regeneration with the £250 million Southern Gateway, £150 million re-development of the Broadmarsh shopping centre and the highly anticipated Boots Island site development that is set to include a 5-star hotel, retail space, homes and offices.

The city is also set to benefit as the HS2 network is constructed, with the East Midlands Hub base planned for Toton, on the outskirts of the city, further reducing journey times to London and bringing the rest of the country closer.

Culture

Nottingham Arts Theatre

Named UNESCO City of Literature, Nottingham is a beacon of the creative arts with The Creative Quarter in centre stage. Refurbished lace factories and warehouses have evolved into modern urban living spaces, galleries take centre stage and restaurants populate the district.

Local Retail shop, Paper Came to Light was founded in honour of the local independent shops in Hockley. Today, you’ll find the best publishing and magazines from around the world stocked.

In the heart of Hockley, Nottingham Arts Theatre has shown an array of fantastic shows featuring some of the best talent in the East Midlands. The main theatre seats 300 people and has a proscenium arch and an orchestra pit.

With independent brands, fashion designers and retailers getting involved every year, Nottingham Fashion Week is a celebration of the city’s clothing industry. With live entertainment this is a chance to see new collections from the emerging talent and established names.

Rental Yields

Sherwood Square, Nottingham

This Is Money’s research discovered that Nottingham claims first and fifth rental hotspots in the UK. NG1 takes first place with an average rental yield of 11.99% while NG7 held fifth place with at 8.89%.

Transport

Nottingham Rail Station

In the heart of the Midlands, Nottingham hosts fantastic transport links including the railway to London St Pancras for as little as 90 minutes. Additionally, The Creative Quarter boasts from the £50,000 tram extension and the planned £188 million connection between Nottingham and Derby.

Final Note

The Creative Quarter boasts the epicentre of culture as Nottingham rises as the fastest growing city in the East Midlands. CBRE Research depicted that in October 2018, Nottingham is the ninth largest creative economy of the UK.

 

Ready to see Nottingham properties? Email us at info@tarquinjones.com for more details.

 

 

info@tarquinjones.comNeighbourhood Watch: The Creative Quarter, Nottingham
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Neighbourhood Watch: Digbeth, Birmingham

Neighbourhood Watch: Digbeth, Birmingham

Brum City    Digbeth is Birmingham’s self-titled creative sector and most distinctive part of the city, less than ten minutes from Bullring and Grand Central. Named “the Coolest Neighbourhood in Britain” by the Sunday Times, Digbeth is a favourite for generation rent. With the upcoming arrival of HS2 and New Street rail station £770 million

Neighbourhood Watch: Digbeth, Birmingham

Brum City 

 

Digbeth is Birmingham’s self-titled creative sector and most distinctive part of the city, less than ten minutes from Bullring and Grand Central. Named “the Coolest Neighbourhood in Britain” by the Sunday Times, Digbeth is a favourite for generation rent. With the upcoming arrival of HS2 and New Street rail station £770 million redevelopments, Digbeth celebrates 5-6% rental yields.

Culture

Digbeth is a trendy, artistic hub comprised of galleries and studios. Eastside Projects is a free, public, artist-run space, showcases temporary shows from both local and international artists. Every Friday of the moth, the artists’ collective teams up with other groups in the area to delivery special events.

 

 

 

 

 

 

 

Transport

New Street Station has undergone £770 million redevelopments, boosting daily passenger capacity to 240,000. The new station is five times the size of the original station with a striking height atrium topped with a bubble roof made from ETFE, a fluorine-based plastic.

 

 

 

 

 

 

 

 

 

Haute Cuisine

Digbeth, Dining Club, Birmingham Mail

Digbeth is home to the infamous Dining Club, a street food dining experience. Cooking a range of alternative cuisines with energetic DJ’s, visitors can enjoy everything from Pizza and crepes to Caribbean and Malaysian dishes under the partially covered rooftop.

 

 

 

 

 

 

 

 

A Final Note

A growing city, Birmingham is proving to be a metropolitan city, with something to accommodate everyone. The rising economy, mass regeneration, and emerging transport links make Digbeth one of the most demanding places for property in the country. Now is the time to invest in the future of the country, the future of education, employment and most importantly, property.

Ready to see Digbeth properties? Email us at info@tarquinjones.com for more details.

 

 

 

 

info@tarquinjones.comNeighbourhood Watch: Digbeth, Birmingham
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