#ereproperty

Top 10 Reasons for Investing in Residential Rented Property with ERE

1. Immediate return on investment.

Investing in rental property can prove to be very beneficial if you are looking for an immediate source of income. Desire for rental property is on the rise, as many cannot afford to buy their own property, consequently leading them to look towards renting instead. Providing that a unit is well tenanted, income can be generated immediately. This will provide you with a supplement alongside your wage, if you are a part-time landlord, or simply some extra cash for savings or whatever else you wish to use it for.

ERE Property ensure that all units sold are tenanted before completion.

2. Hands-off investment.

When investing in residential property, it’s completely up to you if you decide to take on the management yourself or leave this for a management company to take care of. The advantage of choosing to leave the management to an external company is that you have a constant source of income without having any involvement. Another advantage is the ease of finding a good tenant for your chosen apartment – it is generally much easier for a management company to do this as they have the right marketing tools with which to do so.

3. Potential pension pot.

Property investment can be an ideal way to fund your retirement. Whether you choose to buy early on and eventually sell for a cash lump sum, or whether you wait until you are ready to take out your pension and invest it then, either way can be a good way to manage your money in later years.

The immediate return on investment can provide a healthy, sustainable source of income, perfect for using to fund your retirement and ensure that you are still able to live life to the full.

For more information about funding your retirement through property investment, click the link to read our blog “Property Investment & Pensions”.

4. Capital growth.

Some investors are not interested in making a quick return on investments, and instead are looking for good returns in the long term. Capital growth is simply the amount that your unit is worth over a long period of time compared to its original price. Therefore it may be beneficial to investors if they allow capital growth to appreciate on their property, in order to maximise their investments returns.

ERE Property have dealt with a number of Off Plan developments in recent months. The advantage of investing in something off plan is that upon completion your unit will have already accumulated some capital growth upon the units purchase price.

5. Better returns than the bank.

Interest rates for many savers constantly fluctuate, with the most attractive current rates between 2.5 – 3%. Offering a relatively low percentage compared to other investments, options such as ISA’s and fixed term saving accounts provide a stable, low risk return on investment.

Savings accounts are a very safe way of looking after your money with the fact that government regulations are in place, however there are rare occasions where things can go wrong – for example the Northern Rock bank crisis of 2007.

This form of investment however, unlike property investments, does not factor in far superior return on investment found from capital growth and average net yields between 5-7% that ERE Property offers.

6. Providing for your family’s future.

Purchasing an investment property can help to provide a steady income for you family in the future. There is a current trend of parents who buy properties for their children starting university for them to live in – renting out the additional rooms – or just to create revenue to fund the fees and living costs of that child.

Alternatively, helping to provide for your family’s future could come from any properties that you leave as inheritance. You must bear in mind extra costs such as Inheritance Tax (which can be minimised through planning), but it is wise to seek professional advice from an IFA about this.

7. Fully tenanted units.

ERE Property are committed to ensuring that all units sold are tenanted before completion, thus enabling landlords to make the most out of any investment through instant ROI’s. Our various management companies, depending on the development, are on hand to assist with re-tenanting your unit in future.

8. Capital release opportunities.

Various equity release options are available to release funds upon the value of the property, in case quick cash flow is required. This can obtained in the form of additional income, a cash lump sum, or both. 

9. Property is an asset that consistently performs well.

In recent years property has seen an upsurge in investment following the markets 2007 economic downturn. However a recent report from the National office of Statistics has found the “professionally managed private-rented sector investment portfolio has consistently shown itself to be one of the strongest performing assets, even during the downturn when residential assets lost over 17% of their value”. This success of property as an asset class has been predominately due to the shortfall in residential properties within the UK.

10. Regional property experts.

At ERE Property we pride ourselves on the extensive research and due diligence we carry out on all our developments, to provide our investors with the most attractive and lucrative property investments available. This has led us to becoming one of the UK’s leading experts on regional properties due to their strong return on investment rates and potential for capital growth. 

  Disclaimer