So you’ve read our property predications part 1 and part 2, but now the answer to the eternal question- where should I buy an investment property? Osprey Sales & Lettings are THE go-to independant Agent, with offices IN the areas that we are knowledgable about and have significant experiences in. So we’ve endeavoured to give you a comprehensive look at some of the most profitable areas that we build portfolios in for our clients.
Where should one buy?
Whilst we predict national house price increases of 6% over 2017; there are opportunities within the diverse property market that will allow investors to make superior returns. Please note we always recommend purchasing on a 5 year + investment horizon.
As many of you know, RPG covers the whole UK residential market, but we focus on the East Midlands and East of England where we manage c 800 residential units, and where we are active in helping our investor clients source attractive investment properties to buy.
We particularly like this geographical market now.
Why? In a nutshell: strong economic activity, good employment prospects, good transport links, house prices below national average, still rising from a low base (prices are only up c10% from 10 years ago), an active first time buyer market, benefitting from the ripple effect of wealth flowing out from London, areas which are within a 1hour commute of Prime Central London at a fraction of the price.
The blended returns of superior capital growth potential (6%+) accompanied by an attractive rental yield of c 6-7% make for an attractive total return of 12% +. Longer term, we (and other industry professionals) forecast 5-year capital appreciation of c20-25% and rental growth of similar amounts.
This makes the region one of the top forecast areas for capital appreciation in the UK.
Property Finding Service:
We continuously review investment opportunities throughout the UK and we are not geographically constrained. Each opportunity is assessed on a project by project basis on its own merits. As always, due diligence of the unit(s) concerned is imperative.
The areas identified above we particularly like, but most importantly they meet the basic rules of a STABLE RECURRING BLENDED RETURN made up of capital appreciation and rental yield.
It is imperative that you select the right area, the right location, the right development, and the right unit(s) in which to invest in. A poor purchasing strategy (or indeed exit strategy) can have drastic effects upon the total return.
It always amazes us that people use stockbrokers to buy shares and use estate agents to sell houses but often do not use property finders to buy investment property. Many investors are not able to do the in-depth research, nor are they familiar with the local market.
We have been actively finding properties for investors since 2001, we know the local markets, we have the contacts, and we manage properties throughout these regions and we are therefore able to advise and assist our existing clients as well as new landlords.
It means you are being hand-held in what can be a complex purchase procedure, it means being confident in the decisions you have made to invest, and it means that we do not just source a property then run, but once sourced we will manage the property, and hope to forge a long-term relationship with all our clients, old and new.
RPG can act as property finder for you the buyer (not an estate agent acting for the seller).
We can let and manage the property for you (ensuring a seamless hassle free service) and we aim to considerably increase the chances of you attaining a higher total return for your property investment.