top of page
Search

Bored Of The Buy To Let? You Have To Read This!

Not Seeing the Returns you Once Were?


For many years now, buying property to rent out has been the preferred way to invest for smaller investors.

Rising property values, low interest rates and greater disposable wealth in the 1990’s were to blame for the influx of buy-to-let landlords. They provided excellent passive income, healthy capital gains and there’s always been a healthy demand for rental properties from those who aren’t able to make it onto the ladder themselves.

However, it’s looking like the glory days of the BTL might be over. The government have hit the BTL investors with restricted tax relief on interest payments, tighter regulation on mortgages and just for good measure, a big old hike on stamp duty.

Here are our suggestions on how those without a huge pot of money can still make property work for them.

Serviced Accommodation

An incredibly popular alternative to a traditional buy-to-let, and as you’ll know by now, one of our personal favourites. Read about why we love it so much here. In some ways SA is very similar to standard BTL. The difference being it is fully equipped with all amenities and rented on a short term basis, therefore offering much higher returns.

Often overlooked due to it being considered a hands-on form of investment. Fear not, our new luxury serviced accommodation management company, Quarters, are on hand to make it hands-off! We’ll take care of everything from marketing, bookings, managing guests, all maintenance and repairs - you name it, we’ve got it in hand.

Property Funds

This is a manged fund that invests into a range of property-based projects or into property development companies.

This is a passive form of investing that we at Brentor Property specialise in. It spares you all of the hassle of being a landlord and everything that comes with it. It allows you to be part of much bigger, more exciting projects that you perhaps wouldn’t normally have access to. It is also the lowest risk form of investing.

Click here to find out more.

Social Housing

This strategy is becoming increasingly attractive due to the availability of zero voids and zero maintenance contracts. You can also invest through schemes such as Real Estate Annuity Plan. It’s also a really popular option given that it helps provide housing for those on low incomes.

Joint Venture Investing

Securing lending isn’t quite as easy as it once was. People with varying skill sets have been joining forces to share the many potential benefits of investing alongside property and investment experts.

The cash returned to each of the investors is a percentage of the profit achieved equal to the proportion of equity held. In other words, if an investor hold 10% of the shares in the SPV, they will be entitled to 10% of the profit whilst potential losses are limited to the amount invested.

Just be sure to have all of the relevant agreements and structures in place. If you aren’t sure, take advice on this.

19 views0 comments

Comentarios


bottom of page