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Buy-to-let property is one of the best ways to gain an additional source of revenue on the road to financial freedom. Property is an appreciating tangible asset. Depending on the location, investors can benefit from high yields and strong capital growth. Therefore, some investors strongly believe that property is the strongest type of investment that can be made.
However, investing in property is not for everyone. It has a high bar to entry, with property costing considerably more than stocks, cryptocurrency, or bonds. Also, if investors are looking for a completely passive investment, property investment still requires some level of activity. Despite this, the financial benefits are far greater with property investment.
Finding the right property can be a hassle. However, property investment agencies can help. Investors can give agencies details of how much they would like to invest. They will then find the best available properties within the investors’ budget and what best suits their needs. Some investors would like to generate regular incomings. However, others are looking to benefit from long-term capital growth. The advantage of property investment is that both can be achieved with the right location.
CityRise offers expert investment advice, read more, here.
New-build buy-to-lets are a great investment opportunity since new-build apartments come with brand-new appliances and the latest technology. Therefore, maintenance is required far less often, and quality tenants are easier to acquire. These kinds of properties are available in a range of towns and cities across the UK and are available at a range of prices. It is particularly better value to purchase properties off-plan as they are available at a lower price, meaning you can put down a smaller deposit on a high-yielding property.
Read more about the benefits of investing in new-build property, here.
Properties that are situated around good transport links, shops, and amenities are highly desirable. They are the facilities that tenants find attractive when renting a property. As an investor, it is important to consider what any potential tenants would want from their rental property. When speaking to an agency they will be able to provide investors with a breakdown of the surrounding amenities near the location of choice.
Read more about how social infrastructure can increase capital growth, here.
Many cities in the Northwest and North of England are delivering successful regeneration projects, hence, why these cities have become investment hotspots. These areas are particularly of interest because property price growth is high. The increase in property prices in these areas should continue to climb too as the cities attract more residents and businesses. An example of this is Liverpool, where property prices have increased by an astonishing 8.3% year on year from 2021 to 2022. This is following multiple regeneration projects, such as the impressive £5.5bn Waterfront Regeneration which has brought a huge number of professionals and businesses to the city.
Discover more about investment hotspots, here.
Managing a property can take lots of work, from maintenance to tenancy agreements. However, investors can make use of a property management company. The lettings agency will manage the rental properties. If investors would like to be hands-off with their property while generating a passive income an external agency can offer a lot of value.
What Does the Management Company Do Before Tenancy?
Before tenancy, lettings agencies will find the right tenants for the property. Finding the right tenant is of utmost importance. It requires stringent referencing to make sure tenants treat the property with care and payments are met on time. The lettings agency will also manage the viewings, deposits, advertising, keys, and tenancy agreements.
How Does This Benefit Landlords During Tenancy?
The management company will manage the properties and tenants’ needs during the tenancy. This is conducted through regular property visits, arranging maintenance, and maintaining contact with tenants. The management company will also handle all rent collections and tenancy renewals. As a landlord, it provides a hassle-free experience.
What Does the Management Company Handle After Tenancy?
After tenancy, the property will be checked and prepared with care ready for the arrival of the next tenants. This includes property inspections and collection of the keys on the tenants’ departure. They will also arrange the cleaning of the property and handle repairs where required. The agency will deduct funds from the deposit if the property has experienced an unreasonable level of wear and tear.
For a full breakdown of the services of property management, discover more, here.
Investing in property to generate passive income is still the most secure form of investment. Unlike other routes of investment, a property is a tangible asset. This keeps an investor’s capital secure if repayments are met. If an investor is looking for passive income, they can delegate the management and handling of the property and still be rewarded.
The property market is also strong, resilient, and growing. Unlike stocks or cryptocurrency, the property sector is far more predictable. This rewards those who invest with a strong strategy, finding the right property in the right location to increase capital growth.
If you want to learn more about property investment, contact our consultants at CityRise, here.
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