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What method real estate investment in the UK the most beneficial?

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Houses in Multiple Occupation – the most stable and profitable form of investment in the UK.

In this form of investment the investor is better protected from increasing rates .

Basically, tenants in these homes are young processional and key employees who pay good rent .

The standard form of investment “Buy to let” , the landlords are , after payment of mortgage payments, receive an average of 3% of income. In the case of a rate hike by the Bank of England , the size of the profit will be even less.

Investors who have received a license for the use of their premises as Houses in Multiple Occupation , manage to share one room sometimes in room 4, thus 4 times increasing rental income.

 

In any case, the financial success of a homeowner are not the same and depends on his financial literacy, ability to calculate risks and competently to organize the work .

The company Platinum Property Partners (PPP) conducted a study of the investment market in residential property in the UK, researching the profitability of different market sectors.

According to the study, contrary to popular myth, that the best income is income on capital gains, the most stable and profitable is the rental income for your investment in Houses in Multiple Occupation. Even despite the fact that in this form of operation, the landlord often pays the utilities for his tenants, it far exceeds rent .

Research for the period 2010 to 2012 show that the sector HMOs and in the sector of classic lease “Buy to let” ( BTL) investors have losses under “capital gains” , and only in 2013 – 2014 years have seen a recovery in prices. Rental yield grew steadily throughout the period from 2010 to the present time. But especially good earnings learned the landlords of the HMOs.

® Maxim Savitsky. 01.09.2015

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