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Insight & Opinion

The modern rules of UK property investment

Author: Gemma

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For investors looking to expand their investment portfolio, Experience Invest has compiled top tips to help safeguard your UK property investment in today’s modern market.

Rule 1: Planning permission

Whether you’re entering a student property investment or a new-build residential buy-to-let, ensure that planning has been passed.

Planning approval negates development uncertainty and provides investors with a safe buying environment.

Rule 2: Location with a high demand

From care homes to student rooms an investment is only as successful as the location it is situated in and there must be a shortfall between demand and supply. This will help to ensure high occupancy levels and will help to safeguard yields.

All potential investors should look at their chosen investment’s location. For example, if you wish to purchase student property, being within easy reach of the University Campus is a must.  It is also important to consider a student property development’s proximity to local shopping and entertainment as well as good public transport links.

Investors should also check local property prices and comparable properties to ensure their investment is priced correctly. It is also important to find out if there are any other new developments planned that may affect both the demand and desirability of the investment you are considering.

Rule 3: Fully managed

For a hassle-free income, all of Experience Invest’s high-yielding UK property investments are fully managed by an experienced and reputable Management Company.

Carefully chosen by industry experts, each Management Company is handpicked to ensure that your investment is marketed, managed and maintained to the highest of standards.

Typically all management fees and maintenance will be deducted before you receive your returns and should be taken into consideration when purchasing property.

The Management Company will generally have a good relationship with local universities, providing with ample scope to market your unit/s to prospective tenants. The Management Company will have good marketing and tenant recruitment channels, meaning that they are in a position of offer assured rental income to property owners and investors.

Rule 4: Security

Investors should ensure that the purchase of your investment is handled by experienced professionals who are fully-equipped to deal with your investment. Experience Invest recommends a proven and experienced team of commercial solicitors who have successfully dealt with transactions within the investment property sector.

Also with off plan investments you must make sure that all investors funds are held in a secure escrow account that is managed by the solicitors who will then release the funds to developers are specific stages of the build to ensure the project is managed correctly and can be built and completer on time and in budget.

Furthermore, if your investment is off plan, you should ensure that funds are held in a secure designation client account and that funds are only released at specific stages of the build. This will help to provide peace of mind that the project is managed correctly.

All investments provided by Experience Invest are monitored by WT Partnership which is a project monitoring service that sits above the contractors and the developers. For investor security, WT Partnership will verify all invoices and work conducted throughout the build of your investment.

Investors should also consider how to safeguard returns. All of Experience Invest’s UK property investments offer investors an assured income for a predetermined amount of time, to help ensure that investors receive a passive income throughout the duration of their investment.

Rule 5: Exit strategy

Once you have picked the UK property investment which is right for you, you may want to consider how you will exit the investment if you wish to diversify your investment portfolio in the future.

Many investors chose to receive returns from their income generating asset after the assured period has ended however, some investments offer an exit strategy.

For more information about how to generate a passive income from UK property investment, contact Experience Invest today.

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