Considering taking the steps towards investing in property? You’re certainly not alone. The property investment market has seen huge interest over recent years, mostly due to an increase in more affordable options and attractive rental yield rates. Whether you’re keen to take the leap into your next venture but keep asking yourself “is property a good investment?”, “where should I invest in property?”, and “what type of customer should I target?”, read this guide to some of the things you should consider before taking your first step.
It’s crucial that before making any big decisions on property investment, you should spend some time researching the best places to invest in property in 2018. The UK has seen major growth with property investment in recent years, and if you’re wondering why to invest in property in the UK, just look at the figures. From luxury city centre apartments, increasing populations (up from 65,788,574 in 2016 to 66,573,504 in 2018), and high demand for quality properties, now is a fantastic time to join the UK property market.
Whilst buy to let first time buyers might automatically look towards London for a successful investment, figures are showing that this may not be the best route to take. More and more people are looking up North when it comes to property investment. Cities like Manchester and Liverpool have gained the place as some of the top UK spots for property investment, and for good reason. From the cities growing populations to exciting new developments, demand for high quality properties within the Northern Powerhouse is steadily on the rise.
Liverpool is a city that’s experiencing major growth when it comes to property investment. Major new developments under the Northern Powerhouse initiative include Paddington Village’s Knowledge Quarter — a £1 billion flagship expansion site that aims to enrich the technology, science, health and education sectors of the city. Along with this, 2018 has also welcomed England’s first sub-national transport body, ‘Transport For The North’. This development will help boost economic growth in the North through the transformation of transport systems, including the introduction of a ‘Northern Powerhouse Rail’ that will connect Liverpool to Manchester airport. The new ‘Strategic Rail’ proposal also offers increased frequency and capacity for the rail networks across the North. It’s developments like these that welcome more and more people into Liverpool each year, making the demand for property higher.
The Target Market
If you’ve researched locations and read up on the benefits of each area, but you’re still asking yourself where should I invest in property, it’s time to think about the type of target market you’d like your property to appeal to.
Different types of property will undoubtedly appeal to different audiences when it comes to investing in property. More high-end luxury apartments are becoming increasingly popular with young professionals in city centre locations. These types of tenants have a good, steady income, but aren’t yet ready to rent or buy a house and are looking for somewhere that’s close to their workplace and the main amenities and attractions of the city centre.
Similarly, when it comes to the student property market, growing numbers of students are demanding accommodation that’s a far cry from the grotty shared housing or cramped University halls of past years. These student apartments offer everything you would need for a comfortable, convenient stay in your University city, with great locations, super-fast internet connection, modern design and furnishings and spacious living areas and kitchens.
The type of student that’s likely to be interested in luxury student accommodation is those from a wealthier background, or overseas students. The population of international students is growing at a rapid rate within the UK, with a total of around 450,000 international students choosing the UK in 2016/17. Students from countries that are far from the UK mean good news for property investors who are concerned about tenants leaving the city during term times.
But why invest in property that’s aimed at this target market? And why invest in property with a more modern, luxurious design? For one thing, the high demand for luxury apartments and student accommodation means that you’re guaranteed to have long term interest in your property. Other reasons to invest in UK property that appeals to students or young professionals is the high rental returns and potential for long term tenants, with students who wish to stay for the full duration of their studies.
For buy to let first time buyers and experienced investors alike, the cost of the property you’re buying is always a major factor. For a first-time buyer renting out property, the cost needs to be affordable for the buyer and offer an attractive rental yield. Liverpool properties at RW Invest range from as low as £45,450 to £175,000, all with a 7% to 8% net rental return. Our Hamilton Hub student property is the lowest priced property investment in the UK and offers big potential for capital appreciation with one of the biggest property investment companies in the country. Due to the low costs and high rental yields, student apartments like Hamilton Hub are a good option when it comes to investing in property for beginners.
Location also plays a major part in the cost of the property that you invest in. When compared to London, property in Liverpool is significantly cheaper, with London house prices averaging around £671,412, whereas Liverpool boasts an average figure of £158,299. The cost of living for the tenants also contributes towards a cities popularity, with a number of desirable tenants such as working professionals moving from London to Northern cities like Manchester to escape the capitals high costs.
Still have questions before making your first property investment? Contact us today to find out more about our fantastic choice of properties.