Are you wondering how to maximise your property investment returns in a slow market or whether short-term lets are a better investment choice? Our expert investment consultant, Luke Gribben, has answered some of the most commonly asked investment questions from our clients to help you make informed investment decisions. With years of experience in helping clients protect and maximise their investments, Luke provides expert insights on mitigating risk, selecting the right management company, and much more. Whether you’re a seasoned investor or just starting out keep reading to gain valuable insights from Luke.
1. How do I ensure a good return on investment in a slow market?
This is one of our most frequently asked investment questions. It is important to make sure you purchase a property below the market value, off-plan properties are ideal for this as they sit around 15% below. Purchasing an off-plan or a new build property will give you a 10-year warranty, this will provide you with peace of mind because there will be no surprise maintenance costs later down the line.
Additionally purchasing your property investments through a limited company will give you a wide range of benefits including reducing taxes and lowering your expenses. To learn more benefits of investing through a limited company get in touch today for our expert advice.
Short-term lets are a good way to increase your returns as they will dramatically increase your gross rental income. It is also important to select a good management company, by doing so you can increase your return as their expertise will help achieve high occupancy rates, the cheapest isn’t always the best but you also want to make sure your management costs are nice and low.
2. Should I consider investing in a different type of property, such as a short-term let instead of a residential one?
I would always recommend investing in short-term lets if it is possible. You have the potential to make a much higher net return as opposed to a residential investment. Especially with the current interest rates, you need to be making as much money as possible to ensure you can still make a healthy profit each month.
A lot of people are put off short-term lets because they believe it requires a lot more work which is true if you were to manage it yourself. There are companies you can use that will fully manage the property which means it will be completely hands off and you can be doubling your net return by doing this.
3. How can I mitigate the risks of a slow market and protect my investment?
Diversifying your portfolio is always the best way. Invest in different types of properties in different areas to mitigate risk. Location is also important, investing in areas like the Northwest (Liverpool or Manchester) will ensure strong rental demand, rental yields, and capital growth.
Knowing the market and understanding things like market fluctuations make sure you are always prepared. Be prepared for surprise maintenance costs that might pop up in the future. A way to avoid maintenance costs is to invest in a new build as they provide a 10-year warranty.
If you have any additional investment questions on any aspect of investing in property please get in touch to speak to myself or another member of our team who will provide you with an answer, just click here.
Are you interested in looking for an investment? Get in touch by emailing contact@advantageinvestment.co.uk or calling 0151 433 9300 to speak to Luke or another member of the team who can help you find your perfect investment.
