Modern town centre apartments provide strong investment returns
Modern town centre apartments are on the top of the wish list of many property investors.
A property in a good location, which has modern fittings and furnishing, can make a substantial difference to any property portfolio.
In the UK, for example, many landlords and investors are enjoying stronger than average rental returns from their residential buy-to-let apartments.
In fact, a recent survey by Your Move and Reeds Rains has shown that rental rises are now increasing at their fastest rate since 2010.
Research from the estate agents has shown that the average rental price in the United Kingdom has reached £774 per calendar month (April 2015). Over the last year, rental prices have increased by an average 4.2%. This represents the fastest annual climb since mid-2010.
Property investors who are searching for modern town centre apartments to let to tenants may find that purchasing new-build properties will provide higher yields.
A recent study by HSBC shows that landlords can generate rental yields 1% higher with modern, new-build properties.
An ideal market for investment
The UK is often thought of as a property investment ‘safe haven’.
The country’s growing economy, rising property prices and high consumer confidence have all helped to place the UK into ‘safe haven’ territory.
And recently, the UK’s property market has witnessed a surge of investment in the residential buy-to-let sector.
According to Kent Reliance, over the last year (March 2014 – 2015) the sector grew by 150,000 houses.
Rising rental income and strong yields have attracted new landlords to the private rental sector.
“Landlords are seeing the benefit of a structural change in Britain’s housing market, with tenant demand ever strengthening. Yes, house prices are showing signs of steadying somewhat, but growth [rental market] remains brisk,” Andy Golding, Chief Executive of OneSavings Bank, Kent Reliance commented.
And with the demand for rental property not likely to reduce any time soon, investment in modern town centre apartments may be a good way for property investors to generate a long-term passive income.