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.

The 200 kilometre stretch of coastline is famous for its resorts, villages and spectacular landscapes. Many of the beaches in the Costa Blanca are awarded the Blue Flag almost every year.  This is due to their beautiful, clean white sands and exceptional water quality.

Just 2.5 Hours to Paradise

The whole of the Costa Blanca is easily reached from central Alicante Airport, with year-round flights from all over the UK.  Furthermore, you could be stepping off the plane into that glorious sunshine in as little as two and a half hours!

This makes the Costa Blanca a great choice for short breaks, an easily accessible retirement home, or a quick getaway for those with small children.

A popular destination for both holiday homes and investments for the future, the Costa Blanca has many towns and villages to choose from.  Each has their own unique characteristics, scenery and attractions.  However, they all share the same appeals – the perfect climate, lifestyle and landscapes to die for!

Why Invest In The Costa Blanca?

As more and more foreign investors visit the area, property values have continued to appreciate year on year since 2014.

Unlike other areas in Spain, many visitors to the Costa Blanca tend to stay well beyond the usual holiday season.  Properties are rented out well into the autumn and winter months.  In fact, some people choose to exclusively rent in the Costa Blanca during the winter.  They then return to Northern Europe during the summer months.

Visitors staying for longer periods of time are more inclined to rent out fully furnished properties.  This is because the cost is far less than the daily or weekly rates of hotels or holiday apartments.

Properties In The Costa Blanca

Take a look at some of our investment properties in the Costa Blanca.

Panorama Mar: Punta Prima Beach

Firstly, this apartment development in Punta Prima, Torrevieja, is right on the beach, and the sea views could not be more stunning.

Only an hour’s drive from Alicante Airport, these two and three bedroom seafront apartments have underground parking, along with good sized terraces boasting magnificent views over the Mediterranean Sea.

Iconic, Gran Alacant, Alicante

Secondly, check out this gorgeous development in Cabo de Santa Pola.  This is a green area, between the Santa Pola mountains and Carabassí beach.  Due to be completed in 2022/2023, these two and three bedroom apartments all feature two bathrooms and a garden.

Kiruna Hills, Alenda Golf Club

Fancy living the high life whilst your children play in total safety, without ever having to leave the complex?  Kiruna Hills offers just that.

With a stunning swimming pool and ample communal gardens, this new development is located right in the Alenda Golf Club in the town of Monforte del Cid.

Besides this, Elche, Alicante and its airport are all only ten minutes away by motorway.  In fact, everything you need for a comfortable life is just minutes away; a supermarket, an international school, and of course the golf clubhouse, complete with a gym and restaurant.

All of our available townhouses are south facing and have three bedrooms and three bathrooms.  What more could you need?

To speak to us about any of our investment properties, call us on 03333 034 767 or send us a message today.

The post The Costa Blanca – Living The Dream appeared first on Lujo Investments Worldwide.

Investment opportunities abroad are particularly alluring due to the property prices typically being much lower than here in the UK.  Also, countries such as Spain, France, Cyprus and Turkey offer coveted culture, cuisine and climate.

Better Yields From Overseas Property

If you’ve researched your market thoroughly and chosen your property wisely, you should be able to secure a good income from overseas property investment.  Eager holidaymakers will always be willing to pay good money to rent out the right property in the right location.

Property Investment in Emerging Markets

Tax advantages and capital growth opportunities can be found in several emerging markets.

Whilst holiday home rental markets in the UK can be profitable, it’s much easier to build capital gains by investing in a country with an up-and-coming economy.

Because of this, you should not only look at the usual places for overseas investment.  Also bear in mind countries that will soon be boasting improvements to their infrastructure and facilities, for an even bigger return on your investment.

Expert Overseas Property Investment Solutions

With good professional guidance, careful research and preparation, you stand the best chance of making a success of your overseas property purchase.

It’s important to be aware that every country will have different legalities, costs and procedures when it comes to buying property.  You should start by familiarising yourself with these before looking at properties.

We also strongly recommend that you enlist the help of a local lawyer and translator.  They’ll be able to help you through the paperwork and ensure that everything goes smoothly.

Overseas Investment Properties Available Now

As leading UK and overseas property investment specialists, Lujo Investments Worldwide offer suggestions and support to our clients, helping them to achieve their investment objectives.

Take a look at just some of our many overseas investment opportunities below.

Oasis 325, La Resina Golf, Estepona

Enjoy the Mediterranean lifestyle by investing in Oasis 325 in Estepona.

The 127 exclusive homes are all south facing with large terraces, ensuring optimal use of sunlight. Choose from two or three-bedroom homes, all of which have a garage and storage room included.

Diamond Apartments, Turkey

Property buyers in Bodrum will have everything on their doorstep, from shopping facilities to nightlife.

Diamond Apartments are located beside a boutique marketplace which includes a supermarket.  The apartments themselves house a spa, fitness centre, and three swimming pools.

Villa Angelo, Benalmádena Alto

This beautiful villa in Benalmádena Alto offers a perfect location.  It’s close to Malaga and its airport, as well as the relaxed lifestyle of Benalmádena port.

There are three bedrooms, and the villa is southeast facing with picturesque sea views.

Pegeia Golden View Villas, Paphos

Pegeia Golden View Villas is a stunning residential development comprising 19 villas, situated in the central area of Pegeia, Paphos.

The three-bedroom villas feature a contemporary design, and each has its own private swimming pool.  The roof terraces all have amazing views of the sea.

If you are seeking to buy or sell overseas property, contact our investment team today to discuss how Lujo Investments Worldwide can help you.

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