Buy To Let Property Investment Is Not A Short-Term Project

Whatever your situation, it is essential to understand that buy-to-let property investment is by no means a short-term prospect. All property investment needs to be conducted in the medium to long term. This generally means a minimum of five to ten years, but usually longer.

You should look at the market as it will be five to ten years into the future and beyond. Property investment remains the best performing asset, with projected predictions for UK buy-to-let investment looking extremely positive over this longer timescale.

Revenue Streams From Buy To Let Property Investment

Capital growth and rental yield are the two ways in which you can make money as a property investor. It is important to understand these before purchasing a buy-to-let property in the UK, in order to maximise your opportunities.

Capital growth, or capital appreciation, is profit made on an investment. This is measured by the increase in its market value over the cost price.

Rental yield is the return that a property investor is likely to receive by renting out their property. This is a percentage figure, which is calculated by taking the yearly rental income and dividing it by the total amount of money invested in the property. It is important that your rental yield is enough to be sustainable over the long-term.

What Is Your End Goal?

When investing in buy-to-let property in the UK, you should ask yourself what the end goal is for making the property investment. Is it to build a pension pot or increase your income?  Maybe you’d like to add to your property portfolio or be an overseas property owner with the ability to rent the property out? You will only know if your investment has been successful if you know what your aim was in the first place.

Location, Location, Location

Always remember when investing in UK buy-to-let property that the three most important things to consider are: location, location, location!

The condition and price of any property can be changed. You can even change the size or layout of the property. The one thing that you cannot change is the property’s location. The location creates desirability.  Desirability creates demand.  And demand raises the value of your investment, as well as the potential rental yield!

Think With Your Head, Not Your Heart

If you invest with your heart, you will make decisions based on what you feel. This can lead you to make investments that you never should have considered. A decision made with your heart will often tell you to go ahead regardless of the cost or the potential problems, hoping that the numbers will ‘work themselves out’.

Always think with your head, not with your heart, and do your sums diligently beforehand.

Buy To Let Investment Property Is Not Your Home

Remember when viewing properties that you are not buying the property for yourself to live in, but as an investment. Do not think about what you want from the property, or what you like about it, but what potential renters will want from it or like about it. Ultimately, they are the ones who will be living there and the property needs to appeal to them – not to you.

Due Diligence

Always carry out your own due diligence and make sure that you engage a good team of professionals, for example lawyers, accountants, and financial advisors.

Take a look at some of our favourite buy-to-let properties in the UK.

St Barnabas, Finchley, London

These luxurious one, two and three bedroom apartments are only 30 minutes from central London. With highly refined specifications and idyllic surroundings, the charismatic church of St. Barnabas has been at the heart of the Barnet community for over a century. Residents will be able to take advantage of the extensive transport routes plus social and cultural attractions right on their doorstep.

Signia Court, Wembley, Middlesex

Set over eight floors, all of the one, two and three bedroom apartments at Signia Court benefit from balconies or outdoor space and many are dual aspect.

The fifth floor offers a spacious terrace that provides residents with a unique private area to relax and enjoy views of Wembley Stadium and the London skyline.

Broad Oaks, Downham Market, Norfolk

The Broad Oaks development enjoys excellent transport links to the neighbouring cities of Cambridge, Peterborough, and Norfolk. The 30 acre site comprises a mix of one, two, three and four-bedroom luxury homes. Broad Oaks is ideally located to satisfy the demand for well-priced, freehold accommodation for young professionals and families alike.

To speak to us about any of our investment properties, call us on 0333 3034 767 or send us a message today.

The post UK Top Tips for Buy to Let Beginners – Part Two appeared first on Lujo Investments Worldwide.

At Lujo Investments, we aim to make property investors’ lives as stress-free as possible, with hands-free property investment.

First things first, what’s your budget?

Unless you can make a cash purchase, you’ll have to put down a substantial deposit when getting a mortgage for a buy to let property in the UK. Make sure you do your sums properly to work out how much you can afford.

It’s important to factor in a few things here:

• Buy to let mortgages have higher interest rates than standard mortgages, and usually require a deposit of at least 30% of the property’s value.

• How much rent you’re likely to get? It should typically cover between 125% and 145% of your mortgage payments. For example, if your monthly mortgage payment is £500, you should ideally receive rent of between £625 and £725 per month.

• Make sure you also set aside money for maintenance, or times when the property might be empty. Obviously, this won’t be necessary if you take advantage of the developer’s property management service (see point 3).

• No mortgages are available if investing in student accommodation and hotel investments. If you’re planning to invest in these, you’ll have to buy outright.

• If you plan to take out a mortgage on the property, bear in mind that the valuation will depend on when the purchase is made and when the property is completed. For example, a completed development will have a different mortgage valuation from an off-plan project, which may not be due for completion for twelve months or so. Speaking of which…Off-Plan or Completed?

Off Plan Vs Completed Property Investment

There are two choices in property investment; these are off-plan and completed.

Off-plan means that the property is being sold on the market before it has been completed.  Sometimes it can be sold before work is even underway!  It might be a new build, still a few months off completion. Alternatively, it might be an apartment that has been completed but located in a building that isn’t yet ready for tenants to move in.

Off-plan properties can be great investments as the price tends to increase substantially once the development is completed.

Investors can, therefore, expect a good level of capital growth from such investments.

The advantage of buying a completed property is that you get to see it in its finished state. However, the cost is likely to be much more.

Use the Developer’s Hands-Free Property Investment Management Service

Want to make the leap to being a landlord but worried that you don’t have the time? A hands-free property investment means that your investment will have a guaranteed rental return for a set period.   This period will be different for each development. Your property will be fully managed, so you’ll have no concerns regarding occupancy or dealing with tenants or property maintenance. 

It’s definitely something we recommend, but if you don’t want to take advantage of the property investment management service for any reason, that’s absolutely fine. Obviously, without it, we cannot guarantee the rate of return, but you’re under no obligation to use it.

Take a look at some of our buy to let properties in the UK.

Weavers House, Manchester

This property, located at the gateway of Salford Quays and Media City has only recently been completed. It comprises 30 boutique studio and one-bedroom apartments and is perfect for young professionals.

The Silk Works, Coventry

The Silk Works is, as you might guess, a former historic textiles factory, which has been transformed into 58 stylish one- and two-bedroom apartments.  Only a short distance from Coventry city centre, this property is ideally suited for those looking for luxury and comfort in a city of innovation.

Stanley Docks Area, Liverpool

This iconic Grade II listed building is within walking distance of Lime Street Station, as well as business and retail districts. It comprises a mix of stunning studio, one-, two- and three-bedroom apartments and duplexes.  This makes it perfect for professional couples and families alike.

To speak to us about any of our investment properties, call us on 0333 3034 767 or send us a message today.

The post UK Top Tips for Buy to Let Beginners appeared first on Lujo Investments Worldwide.

However, the tax changes brought in by the government in the last few years have made turning a decent profit a little less straightforward. Having said this, it’s still absolutely possible if you know what you’re doing.

To help you out, here are a few points to consider in order to make good money by buying a property to let in the UK.

Recent Changes For Landlords

Stamp Duty For Buy To Let

We’ll get the bad news out of the way first!  The first change brought in by the government that you may not expect as a new landlord is a three percent additional charge for stamp duty. This was introduced back in 2016, and applies to any property that isn’t your primary residence.

Make sure that you factor this into your calculations when working out your potential returns.

No More Offsetting Rental Income Against Tax Bill

In the past, some landlords offset ten percent of their rental income against their tax bill.  This reflected the cost of repairs to the property caused by wear and tear.  Unfortunately, you’re no longer able to do this, which could obviously negatively affect your profit margins.

Additional Tax Relief Abolished

Landlords can still get a tax credit for 20 percent of their mortgage interest payments.  However, this is less generous than the system that was in place prior to April 2020. It goes without saying that if you can buy without a mortgage then this won’t affect you.

To find out more about tax changes that could affect you as a landlord, visit the government website.

Good News For Would-Be Landlords

On a more positive note, UK rents are expected to climb by a massive 15 percent by 2023, as the demand rises for rental properties.

This means that although the tax changes may have made it a little more difficult for landlords, you can still turn a decent profit with the right property in the right location.

Speaking of which, it’s important not to underestimate the difference a great location will make to your return on investment.  You can still make an excellent return as a buy to let landlord as long as you’re savvy about where you invest.

Best Locations For Buy To Let Properties

Locations with high student populations have been shown to offer some of the highest rental yields.

Take Liverpool, for example. Home to three universities and a whopping 70,000 students, six of its postcodes were listed in the top 25 best buy to let areas in 2018.  The highest of these was L7, which delivered an average rental yield of 9.79 percent.

Choosing which area to invest in will depend on the type of property you’d like to buy.  This could be apartments for professionals, family homes or student accommodation.

Take a look at some of our buy to let properties in UK locations that are highly likely to deliver an excellent return on investment.

Halifax House, Liverpool City Centre

Comprising 26 luxury apartments, this prime city centre accommodation is arranged over three of the four floors.  The ground floor of this grade II listed building houses a stylish bar and restaurant.

A mixture of studio, one and two-bedroom apartments and duplexes, each apartment has a homely feel and highly refined specifications.

Holme House, Nottingham

A new build development located east of central Nottingham, comprising 22 luxury one and two-bedroom apartments, with allocated parking.  You’ll have to be quick to get your hands on one of these though, we have only two remaining!

Arden Gate, Central Birmingham

Located in the heart of the UK’s second city, Arden Gate comprises 225 luxury apartments finished with meticulous attention to detail.  From bespoke kitchens, to tasteful living areas and stylish bathrooms, these apartments are designed to provide the ultimate combination of space, comfort and elegance.

To speak to us about any of our buy to let properties in the UK, give us a call on 0333 303 4767 or send us a message today.

The post Are Buy To Let UK Properties a Good Investment? appeared first on Lujo Investments Worldwide.

It’s easy to see why Spain has become a favourite destination for foreign property investment.  The fantastic year-round climate, comparatively inexpensive cost of living and close proximity to the UK have all made Spain the ideal location for those looking to purchase property overseas.

The Dream Lifestyle

Legal foreign residents make up 2.8 million of Spain’s population, and tourism figures are ever-increasing (the current COVID blip notwithstanding).

Easily accessible from the UK, Spain has links to the majority of regional airports.  Also, you can get there in as little as two and a half hours.

Spanish property prices are still much lower than those back home.  This allows many people to afford the dream lifestyle of owning a holiday home or retiring early, who would not be able to afford such luxuries in the UK.

Flourishing Rental Market In Spain

Investing in a good property in Spain, in the right location, will give you substantial rental potential with excellent returns on your investment.

The right property could potentially be rented out for six months of the year to cover costs, with the accommodation available for your own use, free of charge, for the remainder of the year.

Get On The Property Ladder in Spain

Struggling to get your foot on the first rung of the property ladder in the UK?  Due to the relatively cheap property prices, there’s a recent trend amongst British under 30s to buy their first property in Spain.

It’s much easier to do than you’d think, as the path to buying Spanish property is well-trodden.  There’s lots of expert advice available, and as long as you use a decent, independent lawyer, it should all be fairly straightforward.

Right now, Spanish interest rates are low, and there will soon be a huge demand for rental accommodation following the imminent lifting of COVID restrictions.  All in all, that means that right now is the perfect time to make the intelligent decision to invest in Spanish property.

Off-Plan Investment in Spain

Buying off-plan means making the decision to purchase a property before building work has finished. Sometimes, this means that you will commit to buying before construction has even begun, but not always.  Whether it’s almost finished, or not started yet, it’s still technically known as an off-plan purchase.

Purchasing Early Means Lower Prices

As construction progresses, prices will steadily begin to rise.  Units sell much faster when buyers are able to view them.  It’s best to buy your property as soon as possible, during the earlier stages of development when prices are far lower.  Those people who make the decision to invest in a development early will always see the greatest return on that investment.

The first properties to be sold in any given development will always be the best units.  They offer the highest capital appreciation in the shortest time frame, and usually demand the highest rental incomes.  Penthouse apartments are a classic example of this.

Where To Buy Property In Spain

Arguably the best-known part of Spain amongst foreigners, the Costa del Sol has something for everyone.  A solid choice of location for property investment in Spain, it’s one of the most popular relocation spots in Europe, and the right property will give you a generous rental income.

The Costa del Sol has some of the best beaches in Spain, and has plenty of affordable property.  Many of our properties in the Costa del Sol are available off-plan right now.  The sooner you commit to a purchase, the greater the return on your investment will be.

Properties In The Costa del Sol

Benahavis

The community of Benahavis sits slightly inland from the Costa Del Sol coast, between the towns of Marbella and Estepona, and is one of the most sought-after locations for property investment in Spain.

Perfect for peace and quiet, the luxury properties in Benahavis are some of the most exclusive in the Costa del Sol.  Take a look at some of our properties located in Benahavis here.

If you’re quick, you’ll be able to buy them whilst they’re still off-plan, and at the lowest prices.

Estepona

Alternatively, between Marbella and Manilva lies one of the prettiest towns in Spain, Estepona.  Remaining true to its fishing village origins, you will fall in love with the white-washed houses, colourful geraniums and traditional Spanish seafront promenade.  Check out the beautiful properties located in Estepona here, most of which are available off-plan.

To talk to us about any of our properties in Spain, give us a call on 03333 034 767 or send us a message.

The post Property Investment In Spain appeared first on Lujo Investments Worldwide.

Although geographically in Asia, and surrounded by many Middle Eastern countries, Cyprus is politically a European country and a member of the European Union.

Acquiring property in Cyprus, either as an investment or as a second home, has always been a popular choice among foreign investors.

Cyprus Investment Incentives

To lift Cyprus from the economic decline it experienced prior to 2015, Cyprus’s government had to revitalise the nation’s general investment appeal. These investment schemes worked, and have made Cyprus one of the best places to invest in property in Europe.

Just a few of the government incentives to invest in property in Cyprus include:

• One of the lowest corporate taxes in the EU at just 12.5%
• Reduced residential and commercial property tax rates (VAT)
• Residential property only attracts a 5% VAT tax on the first 200 square meters of the primary permanent residence property.
• No inheritance or succession taxes
• Very attractive personal tax regime for international professionals and individuals not resident in Cyprus.
• Tax deductions to encourage investment into Cypriot startups.

These tax incentives, and far more besides, have contributed to establish Cyprus as a cosmopolitan business centre with many investment opportunities across a wide variety of sectors.

Where To Buy Property In Cyprus

Limassol and Paphos are two of the most popular places to invest in property in Cyprus.

Many Brits who emigrate to Cyprus choose the active and cosmopolitan city of Limassol, and it’s easy to see why.  The selection of international schools, along with many companies basing their offices there makes it a popular choice.

If you’re thinking of buying a property in Cyprus to rent out to tenants, Limassol is a great location, as rental properties are high in demand and short in supply.

Nearby Paphos has the second largest airport in Cyprus, and it’s generally considered to be cheaper to live there than in Limassol.  However, many people work in Limassol, and therefore often choose to commute from Paphos.

Properties In Limassol And Paphos

If you’re after a more laid back environment, or a private house, then Paphos is likely to be more to your taste.  If you’d rather invest in flats in a bustling city, you’ll find what you’re looking for in Limassol.

Take a look at some of our other properties in Cyprus here.  To talk to us about any of our properties, give us a call on 03333 034 767 or send us a message.

The post Cyprus Property Investment Opportunities appeared first on Lujo Investments Worldwide.