Property Investment Strategy: High Returns

How to get the highest possible return for your investment

The purpose of any investment is to secure existing wealth and get the highest possible return for it.

When developing a property investment strategy geared to give you a high return, there are two main approaches you could take: you can invest in buy-to-let properties that give you a high yield in the long term, or buy-to-sell properties which give you the greatest capital growth in the short term.

Buy-to-let

The value of property and the salaries of those able to rent them may be highest in London, but purchase prices mean that the yield for investors in the capital is actually much lower than those available in the other regions.

According to the HSBC, Southampton, Manchester, Nottingham and Blackpool are all cities where high tenant demand for accommodation is driving up rental prices to make them some of the UK’s highest yield hot-spots.

If you choose to become a landlord, then one of the simplest ways to achieve high returns on property investment is with multi-occupancy properties.

The Valuation Office Agency (VOA) report that the median rental for a three bedroom house in Manchester is currently £600pcm.

If converted into a house share suitable for students or single professionals, the same property could achieve rent of approximately £800 to £1000pcm.

Buy-to-sell

If you want high returns in a short time-frame then property development may be the most suitable venture for you.

Speculative investments, those in which you intend to buy cheap and sell high are most likely to be achieved via repossessed or distressed properties in which it’s relatively easy to add value.

The advantage of this kind of investment is that you can achieve a lump-sum payout in a short space of time.

The disadvantage is that any profits will be reduced, not only by the cost of renovations but by periods of vacancy while the property is waiting to be sold and any associated legal fees, Capital Gains Tax or Stamp Duty.

Location

Whether you prefer to let or sell properties or indeed develop a strategy that combines both types of investment in a portfolio, any return you achieve will be largely influenced by their location.

The temptation is always there to invest locally; you know the market, the kind of tenants you can attract, and whether you choose to employ a managed service or not, you can keep an eye on your investment.

However, although there’s undoubtedly some comfort in this, the greatest returns can be achieved by finding those lucrative pockets of housing that are ripe for investment in less familiar parts of the UK.

The challenge for any high return investment strategy lies in finding low-cost properties to which value can be added quickly and easily.

At National Property Portfolio, we source exactly those kinds of properties.

We work with a network of financial institutes and auction houses across the UK to secure a range of residential and commercial properties and land that can be bought before going on the open market at generously reduced prices.

If you’d like to explore our listings, simply sign-up for instant, exclusive access.

For further advice on developing and implementing a high return strategy that gives you the best possible return on your investment, contact our experienced team on 0800 321 3975.