When making any investment you’ll always want to know the best ways to maximise your earning potential. The UK property market is a very competitive market, with landlords constantly searching for great investment opportunities and ways to make their investment stand out from the rest.
As a landlord and property investor, there are a few simple tips and tricks that will help you to make the most of your investments. Whether it’s picking the right location or giving your property those all-important finishing touches, here are just a few ways to maximise profit on your investment.
Location is key to maximising profit on an investment
With an incredibly competitive market and plenty of investment opportunities nationwide, you’ll want to spend some time looking into locations that offer the highest rental yields and where property prices are on the up. While an investment in UK property is usually always a good investment, buyers looking for the best rental yields will want to spend some time finding out which postcodes offer the highest returns.
City centre properties are usually a solid go-to investment option, with plenty of demand from tenants wanting to live in close proximity to all career, social and entertainment opportunities that cities offer. Traditionally London has been a favourable investment option for both local and overseas investors, however with big businesses moving out of the capital and relocating to regional cities. London has begun to fall from its top spot.
Businesses such as Amazon, Google and the BBC have all moved offices into Manchester, while HSBC and Deutsche Bank have both relocated offices to Birmingham.
With these business migrations and increasing demand for properties nearby, areas further north such as Birmingham and Manchester are now taking the top spot, with potential rental yields of up to 6% on residential properties whereas London is averaging between just 1% and 2%.
Buying a property off-plan is a great way to maximise profit on your initial investment. Off-plan properties are properties still in the pre-construction or early construction stages, with the investment made based on initial plans, CGI images or models of what the development will look like.
Off-plan properties allow investors to spread the initial costs of an investment, allowing plenty of time to source the remaining funds for the property or make mortgage arrangements. A payment plan is usually agreed upon with the developer, with a small percentage of the property price paid upfront and the remainder upon completion. On our off-plan properties, we offer investors the option to pay 30% up front and the remaining 70% upon completion. This amount can also be covered by a mortgage (which we can assist you with through our after-sales team). This is a great way to offset initial costs when making a property investment.
As your investment continues through the stages of development, the value of the property is also likely to increase meaning you’ll have gained on your investment before the site is even completed.
Whilst there is concerns surrounding investing in something that’s not yet built, a trusted developer and property specialist will be able to support you in the investment process and provide you with regular updates.
To find out more about our current off-plan investment opportunities and the discounts, payment plans and advice we offer, contact one of our investment experts here.
Furnishing your property and resident services can affect the rents you charge
On buy-to-let properties, features of the apartment and the development can increase the amount of rent you can charge. The higher the rent, the better the yields. The better the yields, the better the return on your investment.
Furnishing your property is a great way to add extra value to your property. A few simple touches provide a lot of value to tenants, with many wanting to be able to live in a property right from the start of their tenancy. Providing good quality furnishings in your apartment can increase the amount of rent you charge by as much as £200 a month. A couple of basic furnishings to include in a buy-to-let property include:
As well as this, resident services within the development can add value to your investment and allow you to charge further premiums. In an incredibly competitive market, these added features really help your property stand out and appeal to potential tenants. Features to look out for that can add value to your property and allow for higher rent charges include:
Many of our new developments feature these additional resident services (with Oxygen ticking just about all of these boxes). Speak to us today to find out more about potential investment opportunities and how we can help you furnish and manage your property.
Location, buying off-plan and providing great tenant services are all excellent ways to add value to your property and improve the returns on your investment. Want to find out more and start making the most out of your investment? Speak to one of our property experts today.
Alliance Investments, 21/Floor, The Centrium
60 Wyndham Street, Central, Hong Kong