How To Find Out About the Best Property Investment Deals
Picture this: You’re shopping in the supermarket and take your items over to the till to be purchased. You find that once the shop assistant has scanned all of your items, your bill comes to just 50% of what you originally thought you would be paying. A great feeling, right? Now, imagine that you could experience similar savings with larger purchases – like property.
If it seems too good to be true, that’s because it often is. With the UK property market experiencing record-breaking activity and house price growth as of late, most buyers will struggle to secure a residential property under the asking price. In fact, many properties in the UK are now selling for over asking price at a rate that hasn’t been seen since before the financial crisis in 2008.
When it comes to buying an investment property, on the other hand, purchasing below market value property is actually more common than you might think. If you’re considering investing in UK buy to let and want to find out how you can secure the best investment deals on UK property, take a look at our guide.
What Real Estate Investment Deals Are There?
There are different real estate investment deals available to those looking to buy an investment property.
Below Market Value Property Prices
One of the biggest property deals is the option to invest at below market value property prices. Commonly referred to as ‘BMV’, this is one of the biggest factors attracting so many people to buy to let investment, enabling investors to save money on their purchase.
Not only does buying a property for less than the current market value allow the investor to save money, but it also helps increase rental yields. The less you spend on your property, the better your return on investment will be.
Say, for instance, you wanted to invest in a property that was worth £200,000 and had a rental cost of £700 a month. With this, your rental yield would be 4.2%. But if that same property was being offered at 30% below market value, and the property price was £140,000, you would have a higher rental yield of 6%.
Below market value property prices can be rare to come by, but they’re available if you know the best place to look. We’ll cover some tips on how to find below market value property deals further down in our guide.
Assured Rental Returns
Assured rental returns are another of the best investment deals UK investors can take advantage of. When a rental yield is assured, it means that the developer of the property is offering a guaranteed sum of money in rental returns for a set period.
This period is normally at least one year. However, when finding investment property deals, you might come across assured rental yield periods of two years or more. Assured rental yields are one of the most coveted real estate investment deals as they provide a sense of security for the investor. Once the investor has passed the assured period, rental returns should remain comparatively high if they have invested in a strong buy to let area.
Being able to save money is welcomed with any purchase, so whenever any savings opportunities arise for buy to let property, you won’t want to miss them.
One of the most popular ways to save money when investing in property is by looking out for any tax savings. The most notable example of this in the last year has been the stamp duty tax holiday introduced by the UK government back in July 2020.
Introduced as a way to give the housing market a boost during the uncertain times of the covid-19 pandemic, the stamp duty tax holiday has allowed buy to let investors to save as much as £15,000 in taxes.
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Finding Investment Property Deals: What Steps Should I Take?
If you’re thinking about investing in property soon, don’t miss out on the chance to find real estate investment deals like below market value property, assured yields, and stamp duty tax savings. Here are some tips on what you can do to find these deals.
How To Find Below Market Property
To find below market value property in the UK, you need to explore off-plan property listings from property developers and property investment companies. Off-plan properties are commonly offered at below-market value prices in a bid to entice new buyers.
This is true of the properties currently sold here at RWinvest. One of our current below market value property deals, Merchant’s Wharf, is sold at 55% below market value. With prices from just £149,950, you would struggle to find similarly low purchase prices for a property with the same location and facilities.
Zoopla states that the average asking price for property in Salford is currently £215,949, so Merchant’s Wharf really is an unmissable chance to save money on your investment.
Another way to find properties below market value is by purchasing property through an auction or investing in a property that needs renovation. Property auctions provide a good opportunity for investors to buy ‘fixer-upper’ properties below their market price.
The property will often sell at a lower amount than the usual value of the property compared to homes in the same location. The investor will need to spend money renovating the property before it can be ready to rent out or sell. The aim is that after a valuation, once all refurbishment work is completed, the property will be worth more than the initial BMV property price.
While securing a below-market value property in this way can be a successful method for some, it’s a lot more time-consuming and can come with some financial difficulties if not done right.
The property type you’ll buy for this kind of investment will also most commonly be terraced houses or similar properties, unlike buying off-plan investment properties which are often apartments. If you want a hassle-free investment instead of a HMO or fixer-upper project, investing in purpose-built projects is the best option.
How To Find Assured Rental Yields
If you’re a property investor that wants to find an investment opportunity with high assured rental yields, you’ll want to do your due diligence and find property investment companies and developers to work with.
Many companies will state whether their properties come with assured rental yields, while others may not disclose this information until an investor has enquired about the property. This is why it’s always a good idea to enquire directly with the company to find out about ‘secret’ deals and offers.
At RWinvest, we have an exclusive Whatsapp messaging service for investors to sign up to. If you want to sign up for the RWinvest Whatsapp service, follow the steps below to hear about exclusive offers, deals, and discounts!:
Step 1. Add 07707 521 664 as a contact, and save us as ‘RWinvest’
Step 2. If you already have WhatsApp installed on your phone or desktop, go to Step 4.
Step 3. If you don’t already have WhatsApp installed on your phone, download it from the App Store on iPhone devices or Play Store for Android.
Step 4. Open your WhatsApp app and find us in your WhatsApp contacts.
Step 5. Send us a message saying “START”, followed by your full name. This will get you signed up for our Whatsapp notifications.
Step 6. You should then receive a confirmation message within 12 hours, meaning that you’re all set up and ready to find out about the best investment deals in the UK!
How to Save on Stamp Duty Tax
To save on stamp duty tax, you need to have completed on your property purchase before the official end of the stamp duty holiday. The full stamp duty holiday now ends on the 30th of June 2021, with lower tax savings available until the 30th of September.
This means that you should act fast if you want to save on stamp duty tax. If you’re investing in an off-plan property that’s not due to complete until after September 2021, you won’t be able to benefit from this tax saving. If you’re set on saving money on stamp duty tax, you’ll need to instead invest in a property that’s already completed.
At RWinvest, we have several great completed developments available for you to choose from. Enquire about our completed properties today and invest in your ideal opportunity to make tax savings on your purchase.
For information on how much you could save during the stamp duty tax holiday, check out our stamp duty tax calculator.
Things to Keep in Mind When Looking For the Best Investment Deals UK
Make Sure You’re Ready
One of the best pieces of advice when making any kind of big financial commitment is to make sure you’re ready.
Whether you’re a beginner investor or someone who already owns investment properties and is looking to add to their property portfolio, it’s always important to think about whether you’re financially ready to make this purchase.
Even with discounts and offers, investing in property can come with additional costs that add up, so be sure to factor this into your decision.
Do Your Due Diligence
Real estate investment deals can often seem too good to be true. And occasionally, they are. Be sure to conduct thorough due diligence when considering purchasing a property with an enticing deal like below market value prices or assured yields.
This means researching the company selling the property and looking into the developer behind it. Pay attention to things like customer reviews and the company’s track record of completed projects, and look at how many years of experience they have.
For more tips on conducting due diligence, read our guide on how to find a good property development company.
Do Your Research
As with any buy to let venture, you’ll still want to do thorough research into the property you’re investing in and the area that it’s based. You should research the property’s area to find out whether the property market there is performing strongly.
Without doing the right market research, you could find that the below market value property you invested in hasn’t actually grown in value over time, leaving you with little in the way of capital growth returns. The same goes for rental returns. If you invest in an area with low average rental prices and a lack of rental demand, you might experience void periods and minimal rental income.
For information on the property market in the UK, check out our UK housing market guides which cover the property market in Liverpool, Manchester house price growth, and more.
Contact RWinvest For the Best Investment Deals in the UK
If you’re ready to buy an investment property and are keen to benefit from the top real estate investment deals, get in touch with RWinvest today for information on below market value property in top buy to let locations.
We have some amazing property investment deals available, with new offers launching on a regular basis. Get in touch today to find out about our current opportunities, with assured rental yields of up to 8% and 55% below market value property deals.