Buy-to-let properties are becoming the chosen investment for many as they seek to find an asset where their money can work hard for them, providing high returns as well as offering a safe investment. The price of property in recent years has continued to increase in many areas of the UK and the same can be said for rental prices which make a buy-to-let investment even more appealing.
Interest rates are at an all-time low and with stocks and shares being relatively volatile it has resulted in more people looking to place their capital in an asset that will provide a solid return on their investment.
Historically, purchasing property has been one of the safest ways to invest but it has also been one of the best performing investments and this still remains the same. A UK buy-to-let property investment brings together the benefits of a regular income along with capital appreciation in the long-term.
Investors are always looking for a reliable investment and it comes as no surprise that since the introduction of buy-to-let mortgages back in the mid-nineties, they have offered impressive returns that perform far better than other asset classes.
For those investors looking to make a buy-to-let property investment, now is a great time to begin the process. Rental prices are increasing and yields of up to 10% can be achieved and in some cases more, especially if the right property is purchased. When compared to the extremely low interest on savings it is easy to understand why buy-to-lets are a popular choice with investors, but they are also driven by the potential capital growth in the medium to long-term.
There are many different factors that can turn a buy-to-let property investment into a successful investment and the main ones are the location of the property, the style and type of property and the state of the property which means that research is crucial. It is not just about the property itself but good transport links and local amenities all help to make certain properties stand out from the rest, so ensuring that the property is likely to match the preferences of any potential tenants will enable investors to really maximise its potential.
Tenants now expect more from their rental accommodation so additional costs such as fitting modern bathrooms and luxurious kitchens have to be taken into consideration but remember that it is likely to help return higher yields when it comes to rental prices and capital appreciation. Making sure that there is a demand for rental properties in the area is essential to becoming a successful buy-to-let investor, but also the ability to spot an over-saturated rental market, as this will mean tough competition with no real possibility of rental increases, therefore making it difficult to make the investment work in the right way.
Buy-to-let properties are now becoming the favoured choice for those who are looking to make their pensions work harder and Hopwood House have a wide range of UK buy-to-let investment properties to suit all budgets. For more information or if you need assistance in making the right investment decision, contact Hopwood House today.
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Generic investor clients questions relating to UK Buy to Let developments for investment
Q. Do I have to pay tax whether I am a UK resident or non UK resident?
A. Normally, assuming an investor is based in the UK, there is a standard deduction (taken at source) of 20% tax from the UK tax authorities (HMRC) on the rental income. However, for Non UK Resident Investors, an exception can be applied for through HMRC, which is called The Non Resident Landlord Scheme (NRLS). Obtaining NRLS status enables you to receive the rental income without tax being taken at source. However, this does not mean that you are not liable to UK income tax and just as important, it does not mean that you do not have to file an annual UK tax return, you do. If you require further information on this subject, we can introduce you to experienced tax specialists. Part of our service would be to assist you through the whole process.
Published: 18 April 2017A range of single desk investments have now been launched by the developers of Regent 88, offering 8% net assured for 10 years, with a buy back option of 120% in Year 7, rising to 130% in Year 10.
Published: 18 April 2017Earn up to 10% net per annum at the new Shanklin care home investment in the Isle of Wight. Designed to offer the investor an increased choose, investors can now choose from three separate investment return structures.
Published: 3 April 2017Eldon Grove is our latest buy-to-let investment opportunity coming to the vibrant city of Liverpool. The development is marketed 28% below market value and offers investors 7% net assured for 2 years.
Published: 29 March 2017Over the past few years Manchester has been the investors favourite due to developments offering some of the highest yields in the UK. Manchester has been recorded to have the fastest property price growth in the UK with 8.8% growth.
Published: 13 March 2017Overseas investors are taking advantage of the current sterling instability, with 45% of UK commercial investment coming from overseas buyers in 2016.
Published: 6 March 2017Recent statistics has shown UK housing affordability is at its worst level in over a decade. This is seen through property prices increasing by 32% over the last five years alone, with the average wage growing by just 7%.
Published: 6 January 2017Manchester is quickly becoming more popular with Chinese investors as the city offers some of the highest yields in Britain. Real estate enquiries rose by an overwhelming 53.8% compared to previous months.