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Insight & Opinion

Where to buy investment property to generate passive returns?

Author: Gemma





Investors looking to generate returns from the UK’s buy-to-let market should carefully consider where to buy investment property before they invest.
Factors such as demand and occupancy rates should play a key role in the decision making process.

Local estate agents will be able to provide information about the most popular types of property in the rental sector, vacancy rates and average rental prices.

Investors should also look at the price of property in the area and consider if the property they are purchasing is valued at the right price.

Whether it’s a one bedroom flat or a 3 bedroom house, considering where to buy investment property will contribute to the success of the investment.

Investment property in Leeds

Leeds is an ideal location for buy-to-let investment.

According to Knight Frank’s The Rental Revolution 2014 report, Leeds has experienced a 5.1% average rental growth in the year to Q4 2013.

In the same time period, average capital growth increased by 3% in Leeds.

Highlighting the demand for rental property in Leeds, local agent states that most lettings companies across Leeds have reported portfolio occupancy rates of 99% or above.

With occupancy levels at 99%, rising rents and climbing property prices, Leeds is a location worth considering when thinking about where to buy investment property.

The future of the market

The UK’s property market is certainly experiencing a flourish of growth and Leeds is no exception to this.

With the number of households in Leeds is projected to rise by 44,500 by 2082 (ONS) and a new £15 billion investment in transport planned to link Manchester to Leeds and Sheffield Railway, the city is expected to continue to grow.

What’s more, economic growth in the city is forecast to outperform the UK significantly from 2016. Leeds ranks as one of the top ten cities in the UK for job creation 2010-2012 (The Rental Revolution 2014, Knight Frank).

And with the average property price in Leeds is now £180,579 (Zoopla) – much lower than London – Leeds offers investors a lower entry level of investment.

Off plan property for sale in Leeds

Experience Invest has just launched a new, high-yielding opportunity in Leeds.

Located in the city centre of Leeds, the development comprises studio, 1 and 2 bedroom apartments.

Early investors will increase capital growth potential by securing an apartment 20% below market comparables.

Victoria House will provide investors with a hands-off way to capitalise on the high demand for rental accommodation in Leeds.

Fully managed by a leading Management Company, investors will receive a passive income of 8% NET per annum which is assured for 3 years.

For more information about how to invest in Victoria House or to discuss where to buy investment property, simply contact Experience Invest today.

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