Acquisitions
Mastering Residential Investments
Acquiring a residential investment property in today’s market can be challenging; with a shortage of supply and competition from owner occupiers.
At Brock Delappe we are here to make the process less challenging and run smoothly. We favour a collaborative approach where suggestions are shared between the client and ourselves. An initial consultation discussing client’s requirements and expectations form the basis of our search. At this juncture we can advise on areas and strategies that the investor may not have considered. Below are some considerations…
Things to Keep in Mind
- We aim for gross yields between 8 and 10%
- Apartments, should be avoided, with management fees eroding returns, and uncertainty around common areas increasing risk
- The more accommodation in a property, the higher the rent, which can translate to a high yield, but can come at a price, which needs to be balanced
- Expensive addresses are usually not aligned with comparatively high rents and generally offer low returns
- Areas near the city or other infrastructure, including hospitals, universities and airports offer high rents but don’t always come with a prohibitively high price tag
- Poor orientation and small back gardens can put off owner occupiers but won’t affect the rental level and can mean higher returns for investors
- Likewise, unfashionable streets in fashionable areas can have the same effect
- Remember, this is a property you are not going to live in, so focus on returns rather than personal preferences
- Purchasing a property through a pension structure is very tax efficient. For more information, see our guide to buying property through a pension
When a sale is agreed, we have recommended solicitors and surveyors that we work closely with to ensure that the correct due diligence is done before completing any purchase. Once the property is acquired, we have a team of contractors who can prepare the unit for the rental market.
Our comprehensive letting and management service ensures the smooth running of your portfolio and maximises your income. Get in touch today to find out more…
