Here are three questions I often get asked:
“Where will the next investment hotspot be?”, or,
“Where is the best place to invest in HMO properties?”, or,
“Where is the best place to get superb income from property investment?”
These are fundamental questions that are actually asking the same thing:
Where should you place your money for the best return?
We are vocal advocates of deals which deliver the maximum reliable income. Income, in the form of rental yield, is immediate, tangible and available at the end of each month.
Capital growth only materialises when you sell or refinance your property. It’s also a riskier return profile than income. As we have seen since 2008 prices can drop significantly, thus eroding your profit.
For this reason we suggest that you focus on your profit in the form of what you net in your pocket each month. As the rather cliched phrase goes, “Turnover/growth is vanity, profit is sanity!”
So where is the best place to invest in HMO properties?
If rental yield is the most important, where should you invest?
In our view, currently the best yields are found in the North West. In particular between Manchester and Liverpool.
To break it down to the most hard and cold facts, and using our client-funded model for HMOs:
We target gross rental returns of over 19%
Net returns you should expect are over 14%
Investment in any asset class is about return. I understand the attraction of having properties close to where you live. But when you can get impressive returns, fully managed so that you don’t have to get involved, it must be worth a closer look.
HMO Property Guide
A good place to start is our HMO Property Guide post where I share, for free, my thoughts on the HMO market place and what you should be looking for. This includes further thoughts on the best place to invest in HMO properties. Please spend time looking over the other posts on this blog. The information is free for you to use and share as you feel appropriate.
Please also spend time looking over the other posts on this blog. The information is free for you to use and share as you feel appropriate.
If you would like to talk to me directly about HMO property investment, or any other topic to do with property investment, please follow this link, leave your details, and I will be in touch within two business days.