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  • 8-12% NET annual yields
  • Up to 25-year fixed income agreements
  • Professional onsite management
  • Full legal ownership
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Buy-to-let property

Learn how to best capitalise on the BTL sector

Welcome to our buy-to-let investment hub. Here, you will discover how to identify to highest yielding buy-to-let property investments.

Here, you will discover the fundamentals behind the UK’s most popular property investment sector, as well as alternatives that also provide an effortless high NET income.

Select a topic below to skip to that category, scroll through the hub or get in touch with one of our experienced property consultants to discover more.

The PostCOde Essex
Tenant-ready & ideal for London commuters
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The PostCOde is our newly operational high street property in the UK’s top buy-to-let location. Sitting adjacent to Fenwick’s department store and a short walk from 2 mainline train stations, it is highly sought-after by professional London commuters.

  • Direct 47-minute train to Central London
  • Tenant-ready, with luxury fixtures & fittings
  • Expected 10.6% NET geared return
  • Mortgageable: invest from £36,875

The changing face of buy-to-let

For decades, it’s been common practice for people to buy a second property and rent it out as a sideline to boost the income they earn from their day job.

Unfortunately, recent tax and licensing legislation have made it increasingly difficult for these single-property landlords to run them efficiently or to turn a profit; nowadays, it’s a great deal of work and stress for a very poor reward.

Nor can they rely on capital growth in the volatile residential market for their retirement nest egg.

Of course, there will always be a huge demand for residential rental accommodation, especially in times like these when the first rung on the property ladder is unattainable to most.

However, it is increasingly becoming the exclusive preserve of specialist property companies or professional landlords with substantial portfolios of homes in multiple occupation (HMO).

Property investment is not a closed shop

The fact that the buy-to-let property journey has been a staple of the daytime television schedules for so long has led many to assume that it’s the only way for a private individual to invest in property – particularly since alternatives are hardly ever mentioned.

But they are there if you know where to look.

Discover more from a property expert

A specialist consultant can point you in the direction of purpose built student accommodation (PBSA), serviced apartments, furnished holiday lets (FHLs) and even residential rental accommodation which can all deliver investors a 7-12% NET annual income.

This is streets ahead of the buy-to-let national average of 2% NET (Association of Residential Letting Agents) and the 7% gross returns in rental hotspots such as Manchester and Salford.

Arrange an appointment with one of our consultants

Average national yield

Highest national yield

Average annual income over past decade

How much capital do you need to invest?

Let’s take a traditional buy-to-let property as our start point.

The average buy-to-let mortgage needs a 25% deposit. Based on the national average residential property price of £220,713, that’s just over £55,000 – but depending which mortgage you take, there’ll be an arrangement fee of between £1,000 and £5,000.

There’ll also be Stamp Duty, surveyor and estate agent fees along with refurbishment costs which nationally average out at £5,750.

All in all, you’re looking at a capital outlay of £74,250.

Mortgage down payment£55,000
Mortgage arrangement fee (average)£2,500
Stamp Duty Land Tax£8,500
Estate agent fees£2,500

Average BTL mortgage deposit

Stamp Duty and agency fees

Typical initial renovation cost

Some alternative property investment options

Purpose built student accommodation: the highest yielding UK property sector

PBSA has proved itself recession-proof, with demand, occupancy and resale values all unaffected by wider economic factors, unlike the unpredictable and hypersensitive residential housing market.

A British degree is highly prized around the world, which is why the UK is second only to the US as a destination for higher education. We have a total student population of 2.32 million, over 440,000 of whom are from overseas.

View our available student properties

Serviced apartments

Serviced apartments are the country’s fastest growing hospitality sector, with UK tourism on an upward trajectory and currently at record levels.

Bigger and better value than hotel rooms, these fully equipped apartments are increasingly favoured by holidaymakers, particularly families and groups.

This sector is capitalising on the UK’s buoyant tourist sector, with the country experiencing 8 consecutive record-breaking years for visitor number growth.

Like student property, serviced apartments are classified as commercial property – which means you pay no Stamp Duty at all below a purchase price of £150,000.

View our available serviced apartments

Higher yields, lower costs, zero effort

An enlightened business model will allow a developer to offer investors a generous assured, contracted income for a fixed period of time – ideally from 7-12% NET.

This is only possible when the developer is relying on long-term rental revenue growth to make their ultimate profit, rather than by inflating the purchase price offered to buyers.

The sheer size of developments in these sectors creates beneficial economies of scale to drive down and thinly spread land, construction and operating costs, increasing investor income.

These same economies of scale allow the developer/freeholder to appoint and incentivise a full-time management team to take care of every aspect of the property.

This means investors have no operational responsibilities whatsoever; they can buy a property and then forget it throughout their fixed income term.

SDLT3%+ of purchase priceZero
Surveyor's fee£250 to £600+Zero
Mortgage fee£2,000+Zero
Estate agent's fee1-3% of purchase price (+VAT)Zero
Initial repairs£5,750 (UK average)Zero
Legal complianceOngoing, annual costsZero
Management7-17% of rental incomeZero
Maintenance costsOngoing & unpredictableZero
Furniture renewalOngoing & unpredictableZero
*Priced at under £150,000

Cash or mortgage?

Your £74,250 cash deposit for a buy-to-let could buy outright a long leasehold on a range of fully-managed student properties and serviced apartments.

These could deliver 7% – 12% NET income each year for as long as 10 years and with full onsite management included, that income would be effortless.

Since the attractive fixed income term is transferable to a new buyer, you could also stand to make as much as 40% capital growth at resale.

However, some serviced and residential apartments can be bought with a mortgage – which means that mainly you’re using someone else’s money.

This mortgage can instantly free up 75% of your capital, to do with as you please.

So if you bought a £200,000 property with a £50,000 deposit, that would be £150,000 straight back in your account. Because your capital isn’t locked away until you resell, you’ll be better off even after mortgage repayments and any management costs.

Your capital investment is just £50,000, but it will work that much harder, providing ‘geared returns’ which can often double your annual yield.

And if you buy an FHL, you could benefit even further from capital allowances which will deliver 4+ years of tax-free income, along with other tax benefits.

As we said earlier, with the right guidance, there’s an ideal investment property for you somewhere out there.

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