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What is an investment property?

A property investment is a property in which you purchase with the intention of making a profit. It could be a house, a flat, or a commercial building. You can also choose from various property asset classes, such as buy-to-let, short-term lets, housing multiple occupants, serviced accommodation, or social housing.

build-to-rent property investors

What is off-plan property investment?

Off-plan property investment means buying a property, usually an apartment in a larger development, before the full development is complete. Investors buy into the scheme by paying a deposit before construction or during the construction process.

Why invest in property?

Property is a tangible asset and values continue on an upwards trajectory. Property investment in the UK offers significant financial benefits and high return potential. The UK housing market’s resilience makes it attractive to investors.

Key benefits include:

Financial Benefits:

  • Steady Cash Flow: Rental income provides consistent earnings which are in your control.
  • Capital Appreciation: UK property values generally rise over time, boosting long-term wealth.
  • Tax Advantages: Investors can claim deductions on mortgage interest and maintenance.
  • Inflation Hedge: Real estate often matches or exceeds inflation, preserving value.
  • Leverage Opportunities: Mortgages allow investors to amplify returns and expand portfolios with less initial capital.
  • Capital appreciation

    Investing in property for the sole purpose to resell it in the future can be lucrative and tax efficient. This is because buyers are not liable for capital gains tax on any of the profits that may be made from the sale. Moreover, as mentioned previously, the upward trend in prices over the years is incredibly advantageous for investors interested in capital appreciation. Property buyers are advised to think strategically when it comes to long-term investments, allowing themselves to gain bigger profits from their property once sold. House values climb annually, which is why investors are now expected to earn around 30.3% in capital gains
    after selling a 10-year-old property.

    Property prices in the UK have soared since 2020, with the stamp duty holiday
    fuelling buyer demand, and a nationwide population growth of 8.8% fuelling this even further. Notably, the housing shortage – caused by major population expansion – continues to drive up the prices of properties and is expected to for the foreseeable future. In fact, the average UK property price had reached £276,091 in December 2021, a new record high in property statistics. This £24,500 increase provides insight into the bright future of the market that buyers can reap the benefits of.

  • High rental demand

    As house prices increase and the ability to purchase a home becomes more difficult, there has been a dramatic increase in the demand for rental property. The excessive prices associated with home ownership have resulted in many young people being limited to renting rather than buying. Consequently, the average age of the first-time buyer is now 34, driving the need for rental properties up greatly. The renting trend is set to continue over the next five years at least, with projections demonstrating that over 1.8 million more families will search to rent homes rather than buy them by 2025.

    It is important to note that the shift in the market isn’t solely as a consequence of affordability, as many government schemes have been implemented to assist young people in acquiring their first home. The city living trend, preference for flexibility and improved quality of rental properties have contributed to the gravitation towards renting. The demand is so large that the UK’s rental market value has surpassed 159 world nation economies. Therefore, buy-to-let property investments are an especially lucrative asset to possess.

    Additionally, market trends have suggested that the desire to live in city centre apartments is soaring amongst young professionals and students. Living within the UK’s prime city centres provides residents with a wide range of facilities, amenities, bars and restaurants. In addition, it also offers city centre residents extensive transport links and close proximity to their workplace or university.

  • Potential Rental Income from Property Investment

    A key benefit of property investment is the rental income you generate over time, which can be consistent in areas of high tenant demand. Investing in a property with high demand ensures a reliable income and encourages property value appreciation in the long-term. 

     

  • Long-term stability

    The property market is renowned for providing long-term financial stability and various tax benefits. Investing in bricks and mortar is generally considered low-risk and comes with few complexities compared to other assets, maximising the return on investment (ROI) for purchasers. Property prices are much less volatile than prices in other investment areas such as stocks and bonds, as property market fluctuation has a low probability of negatively impacting returns in comparison to other markets. Furthermore, prices have risen significantly more in property than in the UK stock market since as early as 1989, making this sector an attractive option for investors across the globe.

Looking for Property Investment in the UK? We Can Help.

BuyAssociation offers a variety of investment properties to UK property investors, including off-plan developments, new builds and conversions, HMOs, holiday lets, social housing, and institutional opportunities. We focus on securing investments with high potential to achieve outstanding results for our clients.

As an award-winning property investment company, we provide early access to prime off-market developments. By partnering with us, you’ll gain access to residential properties directly from reputable developers at discounted prices before they reach the open market.

Our personalised investment service prioritises our clients’ objectives to elevate their success. Our property specialists understand the importance of sourcing unique opportunities to meet the requirements of our clients. Leveraging our elevated positioning in the market and industry knowledge, we identify high-value investment opportunities.

If you’re interested in our exclusive opportunities, call us today for professional guidance in expanding your property portfolio.

Types of Property Investment

Property investors can pursue two main strategies: buying to let (rent out), or buying to sell for profit. Beyond this initial decision, various property types and approaches exist, each with their own policies and requirements. 

These include:

  • Purchasing a property to rent out to tenants
  • Purchasing a property to sell it for a profit
  • Off-plan, buy-to-let properties 
  • Student property investment 
  • Houses in multiple occupancy
  • Commercial property investments

At BuyAssociation, we provide expert advice to help clients make informed portfolio decisions. Our team tailors our advice to support your goals, market position, and long-term objectives, ensuring that you acquire suitable property assets. 

Our goal is to connect investors with exclusive opportunities delivered by the UK’s top developers, aligning stock with client needs.

Buy-To-Let Investment Property

Investing in buy-to-let properties is a proven way to capitalise on the UK’s thriving market. Rental properties generate steady passive income and capital growth, especially with strategic planning and choosing the top performing locations. Letting out a property to one household offers predictable returns and easy management. Diversifying with multiple properties in varying sizes and in different locations can further boost yields for sustainable long-term income.

Is Buy-To-Let a Good Property Investment Choice?

Buy-to-let property investment is a strong choice, particularly in the north-west of England, where it yields robust returns. In contrast, the south-east and London face challenges with lower returns. Success varies within these regions, making selecting properties in cities with strong rental demand and impressive yields crucial.

Strategically investing in buy-to-let properties that generate solid returns over time provides landlords with a steady income, especially when diversified. The current high demand for rental housing across the UK, driven by population growth, makes now an ideal time to invest in buy-to-let properties, enhancing their overall desirability.

HMO properties

An experienced investor in the property market might prefer to diversify their portfolio with a range of property types for additional stability and security. UK investors are turning increasingly to housing in multiple occupancy (HMO) rentals as a preferred investment property. Having thoroughly explored the benefits of HMO properties, you will understand the key advantages of expanding your portfolio with this property type.

An HMO consists of several occupied residential properties under one roof, as its name suggests. Bedsit suites or house shares may also be referred to as HMOs. It is important to note that HMO policies should not be confused with joint tenancies since the definition of an official HMO property is legally defined. Simply put, an HMO building will comprise separated rooms that are let on a room-by-room basis, where occupants form more than one household. Most commonly occupied by young professionals and students, these households are extremely cost-effective for tenants with less disposable income yet remain incredibly lucrative for investors.

Diversifying your portfolio with an HMO property

A multi-let property is renowned for producing considerably higher rental yields than a standard single-let property, as a result of the property’s multiple tenants paying rent per month/week. Property market analysts have concluded, in recent years, that the average HMO yields 7% in the country’s most high-demand areas, compared to the 5.5% average yield generated by traditional BTL properties. With BuyAssociation, investors can expect to earn up to 10-15% from the promising HMO opportunities we have available.

Alongside the high yields, letting an HMO property comes with additional security for the landlord. Why might this be? Well, one key reason is the spread of responsibility – for example, if a payment is missed by a tenant, there are multiple other tenants to rely on, which decreases the risk of experiencing a substantial drop in rental income. Moreover, tenant demand for affordable housing is higher than ever before, ensuring interest is always consistent.

Here at BuyAssociation, we look to identify HMO properties in locations with optimal potential for substantial returns and demand. Our property consultants conduct in-depth surveying of areas that produce optimal results for investors.. As our experts have determined that primarily young professionals and university students remain the most common tenants for HMO contracts, the locations we source developments in fit predominantly within these tenant types, ensuring that high occupancy rates will always be sustained. We have HMO investment properties situated in Salford, Bolton and South Yorkshire.

Build-To-Rent Property Investment

Build-to-rent properties are expected to dominate the property investment sector. The UK is experiencing a surge in new developments, driven by the growth of the build-to-rent schemes, which have rapidly expanded the rental sector and has become one of its fastest-growing segments. 

Investing in strategically located build-to-rent properties offers long-term financial returns. Residents can benefit from long-term tenancies, no upfront fees, and professional management services. With increasing numbers of people opting to rent due to high purchase costs, there is a constant demand for efficient rental solutions.

The Benefits of Investing in Build-To-Rent Property

Investing in build-to-rent properties offers several key advantages in today’s market:

Long-Term Tenancies: build-to-rent properties attract long-term tenants, providing stable and predictable income with minimal void periods, maximising returns.

High Rental Yields: With rising rental costs, build-to-rent properties offer strong yields driven by consistent demand for rental housing.

Capital Appreciation: Steady house price increases boost build-to-rent property values, contributing to long-term wealth growth.

Corporate and Institutional Appeal: The build-to-rent sector attracts corporate and institutional investors due to its stability, high-quality properties, and lower risk, promising long-term profits.

Market Growth Potential: The build-to-rent market is poised for continued growth, especially in cities like Manchester, Birmingham, Liverpool, Leeds, and London.

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Are Property Investments Worth It?

Property investment offers the potential for substantial financial returns through rental income and property appreciation. By capitalising on diverse opportunities—such as new-builds, conversions, HMOs, and holiday lets—you can tailor your strategy to align with specific investment goals, maximising profit and satisfaction.

Cash buyers property

Advantages of Property Investment

Property investment offers a variety of advantages, including:

  • Flexibility and Control: Investors can adapt properties to market trends and tenant needs.
  • Research Benefits: By understanding target tenants, investors can avoid revenue loss and vacancy periods.
  • Decision-Making: Investors have the freedom to choose when, where, and how their properties operate.
  • Customisation: The ability to refurbish, add amenities, and upgrade facilities as tenant preferences change.
  • Portfolio Tailoring: Investors can select rental prices, ideal tenant types, and the level of property management and upgrades.
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Invest in social housing

This model of affordable housing was put in place to provide quality homes for vulnerable people. Social housing is made available to households with low incomes at affordable rates, and the rental costs are calculated fairly. The housing crisis has meant that millions of people in the country have struggled to secure a home at a reasonable price, and social housing was established in an effort to solve this problem. Despite the lower rental costs, the quality of social housing is not compromised. Tenants that are eligible for these homes are placed in safe, secure and high-quality units that are legally required to meet a set of safety standards.

This alternative to the private rental sector offers long-term tenancies and a stable place to live for migrants, homeless people, single parents and those with medical needs. Having this option in place is crucial, which is why the demand to rent, build and invest in social housing remains high. Generally speaking, social housing is provided by local councils, social care operators and housing associations and run by professionals that will prioritise maintenance and repairs.

Investment Properties For Sale with BuyAssociation

At BuyAssociation, we offer a carefully curated selection of investment properties, selected by market-savvy experts. Our deep insights and data analysis uncover unique opportunities, driving the growth of our extensive client base. 

With years of experience and an award-winning team, we secure premium deals by collaborating closely with property developers and investors. Our exclusive properties include high quality properties in prime locations across top UK cities such as Liverpool, Manchester, and Birmingham.

Our expert investment consultants are here to make your investment process seamless and successful.

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