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-let investment is 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 investments 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.
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: 17 April 2018Construction on Guildhall Square is now well underway with the structural warranty appointed and the confirmation of the M&E consultant.
Published: 10 April 2018Construction on Colonial Chambers in Q1 2018 has seen final installations throughout floors one to five and the start of the stripping of the roof.
Published: 27 March 2018Manhattan is set to create ultra-premium apartments located in the heart of Manchester, bordering Chinatown. The soft srip out and demoltion has now commenced on the development.
Published: 12 March 2018Silkhouse Court has seen huge progress with construction on the top four floors now well underway. We currently only have 4 premium units left at Silkhouse Court, three on floor 14 and one on floor 15. The 2-bedroom apartments start from £199,995.
Published: 6 March 2018Construction on the Landmark is now well underway and in line for the revised completion date of Q3 2019. The pilling is now completed on site with the basement retaining walls now making good progress.
Published: 13 February 2018Work on The Residence in Manchester is now well underway, however, due to the delays at the start of the build the completion data has now been pushed back to Q4 2019.
Published: 9 August 2017Block A has seen huge progress with the structures, steel frames, facing brickwork and high-level cladding now completed. Block B is also well underway with the steel frame, concreate foundations and 15% of the facing brickwork completed.