Today many people are seeking safe and secure ways to invest and bricks and mortar have always been a favourite for many.
But as you know investing in property can have its pitfalls and a lot of research and due diligence should be undertaken before you consider buying any property, like the location, the state of the buildings structure, any caveats for redevelopment or usage of the property, demand for the type of property, local market conditions, prices, and other environmental and local events plans or potential future circumstances that many impact the property market in the area to name a few.
This is why many investors are opting to invest in purpose-built managed buy-to-properties instead of doing all the due diligence research, and footwork themselves, not to mention the day-to-day hassle of managing a buy-to-let property. However not all purpose-built properties are of the same quality so here are five of the reasons to invest in new purpose-built buy-to-let property which you should make sure are in place when considering this type of investment.
A reputable and good quality property developer will have completed thorough research including a feasibility study into the success and real demand and need for any type of property development before they even apply for planning permission. Also the fact that the development has been granted planning by the council can be further reassurance to the requirement for the type of property in the local area.
As the property will be newly built it will benefit from all the latest and best practice building techniques and technology and will also have strict quality control checks and building warranty and insurances.
A big attraction for many investors is to have the rental returns assured for them for a set number of years and then add this to the fact that many of the new purpose-built property investments are offering higher than average yields then we can see why investors are interested.
As we know things happen in properties, boilers and washing machines break, maintenances has to be done and the tenants always seen to have some type of issue or problem to resolve. Having to manage multiple tenanted properties will take a lot of time and energy so it makes sense to invest in fully-managed properties to minimise the workload. Also as the property is fully managed investors will not have to deal with or problem tenants.
Investment security should be at the core of every investment and when considering a project it is advisable that the following is adhered to:
1. As many of the new-build buy to lets are first sold off plan you should only look at projects where Planning Permission has been granted as this negates development uncertainty.
2. It is also important to ensure that you’re in a safe buying environment whereby Legal Contracts have to be designed to maximise investor security.
3. Once the build commences make sure that your deposits remain with the developer’s solicitors and only released once Architect Certification is supplied for works already completed. This will ensure that the funds are used appropriately.
4. Always ask for regular construction updates and don’t be embarrassed to ask. All good developers will be more than pleased to show off their work.
With some new purpose-built managed buy-to-let properties like student accommodation for example these securities will be in place.