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UK Property Investment a Serious Business

May 5, 2010Article by Ray Withers

UK property investment is becoming a serious business according to international property investment consultancy Property Frontiers. The firm notes that the number of people running buy to let as a proper business has grown massively compared to the numbers of people going into it as a second job or even a hobby.

Property Frontiers director David Cox said:

“The recession gave birth to a wave of newbie, young investors, many of them being bank-rolled by their parents as the chance to finally have a proper career and/or earn a decent living. While many of these are now running successful or semi-successful businesses, most of them found that they had bitten off more than they could or wanted to chew.

“Now the repossession properties are starting to slow in numbers, the people that we are seeing coming into our BMV opportunities, are serious investors, or investors with serious intentions. Many of them are coming with business plans and/or finance in place for the first or the first 2-3 properties. This is exactly what the UK buy to let market needs, unprofessional landlords have given and will continue to give all landlords a bad name.”

Property Frontiers is currently marketing below market value property deals, whereby property is sourced and allotted to investors on a first-come-first served basis. The product offers 3 bedroom semi-detached houses from £50,000 as an example of an average investment opportunity. The scheme also offers 75% finance.

The firm is also marketing student accommodation investments, in the form of studio apartments (in this case studio pods) in Liverpool. These offer a 10% net rental yield, based on tenants already in place at 97% occupancy.

UK property investment died away as we came into the mid-noughties, because prices of UK property had risen massively, and because the advent of budget flights awakened people to the better returns offered by cheaper destinations with holiday rental markets.

It is seriously back in now though, because of the comparatively large amount of distressed and below market value properties found in the UK, and other established markets compared to emerging ones. And one of the greatest aspects to these investments is that they are a double winner; the fact that they are below market value gives way to impressive rental yields, and they are almost certain to regain their capital value within 5 years. It is little wonder that many UK property investment products are currently offered with projected returns of over 100%.

Author

Ray Withers

Ray has over 17 years’ experience in the international property market and bought his own first international property investment back in 2002. Aside from running Property Frontiers, Ray has been involved in residential, hotel, student and commercial property investment and development in both the UK and overseas and co-wrote "Where to Buy Property Abroad - An Investor's Guide". As Founder and Trustee of the Frontiers Foundation, Ray is directly involved with many of its projects to ensure they have a direct and tangible impact in individual communities across the globe. He is passionate about property, travelling, scouting out new opportunities and finding time to spend with his young family.
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