Financial institutions bank on it. Pension funds favour it. Entrepreneurs large and small rely on it. The truth is, wherever you look, property as an investment is solid, reliable and dependable.
While
stock markets may underperform, interest rates remain low, and other
forms of investment carry an element of risk, investing in property
can, with guidance, be a different story.
Cambridge in particular, has increasingly become regarded by professional and institutional investors as one of the top locations in the UK for investment in property. World famous for its beauty and as a centre of excellence, Cambridge is regarded as an attractive place to live with low levels of unemployment and crime rate.
The phenomenal growth in science and telecommunications companies over recent years has also resulted in the city having one of the largest hi-tech clusters in the UK, frequently referred to as silicon fen.
Obviously, this rapid expansion in the commercial sector has had a dramatic effect on the population, which is set to grow at three times the national average in the next couple of decades. Such growth, in our view, means the demand for rented accommodation will increase significantly over the next few years, probably well in excess of similar or larger sized cities. A constantly increasing population, with many people attracted to well paid IT jobs in the city, will undoubtedly provide a steady stream of residents looking for good quality rented accommodation.
Even in such a buoyant market, however, it is important
to choose with care when planning to invest in a property to let.
The decisions you make now will have a big impact on your investment
in the future.
What funds do you have available, for example? Are you looking for
capital growth, income, or a combination of the two? Once the property-buying
criteria have been defined, Rees & Associates will identify
a suitable property or properties for rental investment and provide
a full appraisal for each property recommended showing the net yield
anticipated, allowing for all fees and other expenditure, as well
as the capital growth potential. A typical property appraisal is
included within this brochure.
Investing
for capital growth
The choice for many people is to invest in property as part
of pension planning. Buy now and while the rent covers financial
repayments and the majority of running costs, the property value
will steadily rise. The property can then either be sold in the
future to provide a large cash sum, or continue to provide income
during retirement.
To achieve the highest possible growth, the property should preferably
be in a prime Cambridge location such as the city centre, where
many commentators have forecast that property prices will rise by
50% in the next five years and potentially double over the next
ten years.
Investing for income
If, on the other hand, you wish to gain an immediate income
from your investment, consideration should be given to smaller and
less expensive properties for which demand is always high and where
the potential to generate higher yields is greater.
One or two bedroom flats and apartments near the city centre, for example, are particularly sought after and with increased competition between prospective tenants premium rents can often be achieved. There are also many suitable properties in outlying towns and villages around Cambridge which, while costing less to buy, can still command comparatively high rents.
Banking on the right advice
As specialists in the Cambridge property market, Rees &
Associates are perfectly positioned to help you find the right property
to meet your needs. As buying agents we act solely for and in the
interests of the purchaser. We believe in buying better, both in
terms of location and quality, because the right property in the
right condition will always attract a quality tenant and command
a higher rent.
As part of our comprehensive service, we not only advise on the type of property to invest in, but take care of the whole process for you. We typically consider at least eight properties, shortlist three or four and make offers on perhaps one or two. We can recommend whether the property should be let on a shared or single tenancy basis to maximise income and can advise on the interior and style of furnishings to meet the budget and anticipated rental income of each client.
Overview of services
- Locating the right quality residential properties
- Investment appraisals
- Executing the purchase in a cost effective manner
- Overseeing the whole purchase process
- Advice on repairs, improvements and furnishings to enhance value
