With property investment becoming more and more popular, you may finally be considering starting your investment journey.
It’s a good move. Property prices are expected to grow considerably over the next five years, and with returns already high with increasing rental figures, there’s never been a better time to invest.
While you can opt for traditional methods of going it alone, buying a property yourself, and organising tenants, an increasingly popular way is to use the services of a property investment company – just like us here at RWinvest.
Buying property through a company can be great depending on your goals and can help you have a completely hands-off investment and earn passive income alongside your primary job. Sounds great, right?
With all this in mind, let’s take a deep dive into exactly what property investment companies do, so you can decide if this is the right method for you.
What is a Property Investment Company?
A property investment company is a company that helps you invest in property.
They’re useful if you lack experience purchasing property. This is because the property investment company can guide you through the purchasing process, provide solicitors, and help you find a property management company.
Each property investment company is different and can specialise in different types of property investment, like purpose-built student accommodation, HMOs, traditional residential property, and off-plan.
They can also offer properties with specific selling points, such as properties with high yields or long-term capital growth potential.
With all these different aspects, it’s important to understand your goals before investing in a property.
If you have less money but want high returns, student accommodation may be ideal for you.
Alternatively, suppose you want a combination of high returns and long-term capital growth and have some money to spend. In that case, a traditional residential property may be your best option.
Here at RWinvest, we specialise in off-plan residential and student property, with prices from as low as £64,950 and assured returns of up to 8%.
What Are the Advantages of Investing Through a Company?
Huge Time Saver
One of the main benefits of investing through a company is you can save time. Instead of monitoring websites like Rightmove or Zoopla, checking auction listings, researching online, and booking house viewings, most of the work is done for you.
After a simple chat with a property specialist, you can narrow down exactly what type of property you want and explore all of your latest options. This is great if you’re working full-time and don’t have the freedom to spend hours researching.
Identify Top Properties
If you’re just starting out in the property world, you may find it hard to identify properties with the most potential.
Luckily, thanks to the decades of experience investment companies have, they will usually offer you the best deals on the market in high-growth regions like the North West.
Here at RWinvest, we only work with the best developers to offer investors the most exciting deals.
Most of our properties are focused in the high growth areas of Liverpool and Manchester, which have the highest predicted growth rate in the country of 28.8% by 2025, according to Savills.
Connect You With Property Management Companies
Another key benefit is that often property investment companies offer properties with a management company.
Property management companies are vital if you have a full-time job, live away from your buy to let property, or are just too busy to handle being a landlord. This is because they organise everything for you, from finding tenants to securing rent.
These companies charge for their services, typically 10% of your monthly rental income, but are essential for a completely hands-off investment.
The main benefit of investment companies is you can get hefty discounts, especially if you’re investing in off-plan.
As an incentive to choose an investment company, you can net a sizeable discount due to the relationships they have with developers.
Here at RWinvest, you can find properties up to 55% below market value, with our latest Liverpool development, ELEMENT – The Quarter, over £180,000 below the UK average
Not only can you get some discounts on the overall price, but you can expect some exclusive deals, too.
For instance, RWinvest offers free furniture packs on select properties worth over £5,000.
We also have added incentives once you purchase. If you recommend our services to a friend, for instance, you could get a free £500.
Affordable Payment Plans
Another huge benefit is investment companies can often provide structured payment plans to help you afford property ventures if you don’t have the money upfront.
This has made property investment more accessible than ever and can help you get on the property ladder as soon as possible.
Each company will offer different payment structures, so be sure to ask first to determine if you can afford the property.
While some properties will be available from various sellers, you can sometimes find properties you won’t be able to get anywhere else.
This can include entire developments or specific units in a project.
As an incentive for investing, some companies will even guarantee you returns for a set number of years.
For instance, many of our properties come with assured 8% returns. That’s nearly double the UK average of 4.44%!
Most Paperwork Handled
For beginners, the legal side of property can get complicated, with a lot of paperwork to complete.
That’s not to mention the hassle of finding a solicitor experienced with property law.
However, many companies, including RWinvest, can handle much of the paperwork and provide you with a specialist solicitor for the paperwork you need to complete.
This makes investing as easy as it can be.
By working with investment companies, you can start to understand property investment basics and how to get through the buying process.
This will undoubtedly help you build confidence, which can help you purchase properties on your own in the future.
Of course, this confidence-building won’t just allow you to go it alone, but it might give you the confidence to buy more properties and build your own buy to let portfolio.
What Are the Disadvantages of Investing Through a Company?
Have to be Patient
While you will need patience for the buying process, you will primarily need it if you are buying off-plan.
That’s because off-plan properties can take several months or over a year to reach final completion, so you will need to be patient while the building process lasts.
Those prepared to wait are able to reap the benefits of off-plan property investment. If you want quick returns right away, this isn’t the investment for you.
It is also possible, however, to buy property from a property company that is already complete. Enquire about our completed developments if this is something you’re more interested in.
You Could Miss Out On a Hands-On Experience
Another potential disadvantage is missing out on the hands-on experience.
This is only a downside if you don’t want a hands-off investment, as many people enjoy the personal journey of finding suitable properties and purchasing them.
However, even when investing through a property company, you can still choose to manage the property yourself rather than using a rental management company.
Not all investors who buy property from a company opt for a hands-off venture.
Limited Choice of Investment
Another of the downsides is that you may have a lack of choice. Unlike buying properties on property portals like Rightmove, investment companies tend to offer a smaller stock of investment options to choose from.
This is because property companies like to offer the very best opportunities on the market, focusing on quality rather than quantity.
This means they may specialise in a particular area, like the North West, and may not offer properties in other destinations like London.
If you have a specific area in mind, check and research what type of properties the company specialises in.
Now that you understand why you should consider a property investment company, it’s time to look at what we offer at RWinvest.
Here, we specialise in off-plan property.
Off-plan property is a property that can be purchased before its completion. This can mean the property is still in the planning stage or currently in development.
You may be hesitant to purchase a property that hasn’t reached completion yet, but there are some distinct advantages of buying off-plan property.
First and foremost, it’s cheaper.
As an incentive to buy into a property that isn’t finished, you can expect some incredibly sizeable discounts.
One of our properties, Merchant’s Wharf, can be purchased for 55% below market value.
All of our properties are comfortably below the UK average. Our latest Liverpool property, ELEMENT – The Quarter can be bought from as low as £64,950 – that’s nearly £185,000 cheaper than the UK average of £249,309 and almost £100,000 below the city average.
The fact that it’s cheaper also has a sizeable impact on your capital growth potential.
That’s because, upon completion of the property, the price is already likely to have increased in value. And with UK prices set to increase by 21.1% in the UK by 2025, you are in line for a sizeable profit.
Another benefit is you can cherry-pick the best units.
So, let’s say you are interested in a brand-new development. You may want to purchase a unit with views of the city as you think tenants will like that the most.
While traditional properties won’t allow you the freedom to pick and choose, you can select exactly what property you want if you act early into the development process.
But how will the property look?
Well, while you won’t be able to see the property in person, you can see it through the use of virtual reality technology.
This means you can get an in-depth look at how a property will look through your smartphone, laptop, desktop computer, or virtual reality device.
Is Buying Through an Investment Company Right for You?
So, is buying through an investment company right for you?
To decide whether using an investment company for your buy to let purchase is a good choice for you, you should think about your own preferences and investment plans.
Some investors enjoy the personal exploration of the property market and prefer making their own investments based on their knowledge.
However, companies are perfect for you if you don’t have the spare time to look for a property or just want a completely hands-off investment.
Even if you do have prior knowledge of the property market and property investment but just want access to the best deals available, working with investment companies like us at RWinvest is ideal.
Stylish Baltic Triangle Living
Assured 7% Rental Yields
15-20% Below Market Value
New Luxury Property Investments
7% NET Rental Return
Cherry Pick New Units
Salford Waterfront Apartments
Up to 6.5% Projected Rental Return
55% Below Market Value
What to Do Before Choosing a Company
Before starting your investment journey with a company, there’s a few things you need to consider.
Firstly, you need to research the company.
Due diligence is vital when investing in property, as you will want to feel safe and secure in your investment.
For that reason, be sure to look at both the investment company and the project developer if it’s off-plan.
Look at their portfolio and if they have a history of delivering properties on time and at the price advertised.
Likewise, check out reviews of the companies on websites like Trustpilot.
Here at RWinvest, we’re incredibly proud of our customer feedback with nearly 700 five-star reviews.
Another thing worth researching is the property market in general.
Currently, the North West is one of the best property investment locations in the UK, thanks to the highest predicted capital growth in the country of 28.8% by 2025.
With that in mind, it’s worthwhile considering property investment companies that specialise in North West properties like us.
If you want to understand more about due diligence, and how to identify a good property development company, check out our guide.
Who is RWinvest?
RWinvest is an award-winning property investment company, voted the best property business in the North West in 2020.
With over 17 years of experience, we specialise in residential and student property investment.
If you want to invest in property and explore all the latest options, be sure to contact our property specialists today.
Enquire now and get access to exclusive properties and deals – only with us.