Magnate Assets is an independent porta that is focused on connecting Investors in the GCC region directly to UK developers offering property investments in the UK. This is including Off-plan property, completed property, whole buildings, bulk purchases, build to rent, funding partnerships and equity investments.
Buy to let is when a property is purchased for the purpose of renting it to tenants. Through owning a buy-to-let property, investors can generate a return on investment through regular rental income and an increase in the property’s value over time.
Rental yields are percentage figures which indicate the type of returns you will make on your buy-to-let investment. Yields can be gross and net, the net being the true figure after deducting all the costs from the rent. Knowing your true rental yield is a key part of any property investment strategy.
An assured rental yield is a rental guarantee from the developer of your chosen investment. This allows you to invest in property while knowing you’ll receive a fixed return on your investment for several years. You still make sure that the rental rate is at market rate as after the assured period ends you want to make sure the rent is still achievable.
Investing in buy-to-let properties is a great way to maximise your money by owning a lucrative asset that can generate a regular income and appreciate over time. When well-researched, buy-to-let investments provide consistent rental returns year after year which can be used to grow an attractive property portfolio.
A buy-to-let mortgage is very similar to a regular, residential mortgage – money is loaned by a financial institution to help make the initial purchase cost of a property, and the loan is repaid every month by the property owner over a set time period and usually on an interest only basis ensuring the rental covers the interest payment.
Buy-to-let property investment is considered a business and there are a few diﬀerent types of tax that are associated with it. There are capital gains taxes, income tax, stamp duty, and tax relief. Understanding tax on buy-to-let is integral to making the most out of your investment. It is highly recommended that you speak to an expert who can advise you and help you set up the most tax-efficient structure to minimise the taxes due. Click here to see our recommended partner.
Capital appreciation is when the value of your property increases over time. When you sell it, you will make a profit, also known as capital gains. It’s important to consider the potential of capital appreciation on your investment property alongside rental returns to get the most out of a buy-to-let investment. Many companies like Savills, and JLL will publish reports highlighting potential future gains for the areas of the UK, based on a variety of factors.
Purpose-Built Student Accommodation (PBSA) refers to a property that has been built to provide students with accommodation during their university studies. PBSA is one of the best asset classes for buy-to-let investors to consider thanks to the potential returns and high demand.
There are many differences between student and residential properties. For instance, student properties are rented to students only, while residential properties can be rented to a range of different tenants like young professionals or retirees. Student properties are not normally financed through buy-to-let loans but by more specialised financing.
Off-plan properties are beneficial since they can be purchased at below-market rates and being new, they have a higher chance and magnitude of appreciating in value. Investors also have more flexibility and freedom to hand-pick the best units for their investment.
Check out our guides for the different kinds of investment opportunities across the UK including London and the regional cities. If you wish to acquire independent property investment advice, then click here to arrange a chat with our Managing Director, Keith Egan.
During the duration of assured rental periods, where the developer guarantees the rental income, they allocate a management company that deals with aspects like marketing, finding tenants and general maintenance responsibilities. If you wish to find your own management company then please click here to see our recommendations.