If investors concern themselves too much with national house price data, they will miss opportunities to profit in investments such as London hotel rooms, which can generate a net yield of 7-10% with 50% loan to value finance.
(PRWEB UK) 17 September 2012
According to Colordarcy, this means buy-to-let investors will need to source properties in areas that will offer exceptional yields to increase ROI from buy-to-let investment.
Analysts at Colordarcy.com advise that unless an investor is looking to invest in property in London and in demand areas of the South East, they are unlikely to see any return on investment through house price rises alone, at least in the medium term.
However looking at the latest Rightmove survey, it is clear that the Olympics has had an affect on dampening demand as more people were at home watching TV than out viewing property. This also increased competition amongst sellers according to the report.
Nonetheless, Loxley McKenzie, Managing Director of Colordarcy is more upbeat about other sectors of UK property commenting, “If investors concern themselves too much with national house price data, they will miss opportunities to profit in investments such as London hotel rooms, which can generate a net yield of 7-10% with 50% loan to value finance.
Or on the other hand if investors are looking at Northern England and student property investments in Liverpool the return on investment can be equally good. If those same investors allow themselves to worry about falling UK house prices they will miss the opportunity to invest in one of the UK’s fastest rising sectors.”
According to analysts at Colordarcy, investing in UK student property can provide landlords with 10% yields even when they are fully managed. It is also true that buy-to-let landlords are already benefitting from rising rents in most areas of the UK.
Colordarcy.com advises property investors that it is worth looking at the bigger picture and specific sectors of the UK property market that are generating healthy yields for investors.
Investors should not allow distractions such as monthly house price data that can lead them off course in their investment aims.
Notes to the editor:
Colordarcy is a leading property investment company that specialises in finding positive cash flow investment properties worldwide. Colordarcy investment property portfolio includes some of the best properties for sale in Brazil, Florida, Turkey and the United Kingdom.
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