UK Property Investment

We now source more high yielding buy to lets in hotspots in the UK than any other company - over 60 a month. Most of our investors are repeat investors or have been recommended by other investors, which gives great satisfaction.

We will be concentrating on UK property investment deals giving high yields - namely over 7%.

This is clearly very difficult to achieve - as many areas of the country are only giving 3-5% gross yields ie running at a loss every month, based on borrowing at 5%. It is very hard to justify this as a good investment strategy unless is in a high capital growth market, and most of the UK is currently not.

I believe there will be bargains to be had, and the number of distress sales will increase, as several investors have over stretched themselves, or not done their homework in full.

Good deals will go quickly as always, as most UK investors would prefer UK property investment to any other, which makes perfect sense - you know the legal and finance systems.

1. First and foremost it must be in a good rental location

2. The property must represent good value to the investor

3. There must be a net yield every month ie properties with a gross yield of over 7%, and often higher.

Now clearly this is not easy to do, which is why we have to work so hard to find them, and why they go so quickly!

We source properties on the UK property investment market, and off market through our many sources. As some of you know I have recently been working hard on a large portfolio offered to me off market, yielding over 7.5%, and we regularly pick up smaller portfolios with tenants and furniture already in place - and so is no ambiguity over the value or yield of the property.

I work with a team who I trust and who consistently source good value properties. Every other day, I am offered properties by other finders/investors - and while around 5% are worthwhile, with half an hour of due diligence on my part I find 95% of them are not good value.

I encourage anyone who is interested in any deal I offer, or anyone else for that matter, to do their due diligence.

For instance today I was offered a large portfolio in the north west of England, and while the yields looked good, the values looked high to me, but I emailed to an agent in the area who has been a great help to me, and he immediately confirmed this and went through the portfolio for me.

So any deal I offer will be at the correct value - no inflated prices - and will give a net yield each month.

For me this is logical, as any investment should make you money - not cost you money each month - so keep an eye out for my UK property investment deals.

"Thanks Alan, ok yes I am a big fan of the North East, having lived here all my life and owning over 40 properties here myself I think I have put my money where my mouth is! Here are my thoughts,

Why The North East

When you talk to anyone about the North East they immediately conjure up a picture of coalmines or shipbuilding both of which were very much at the heart of the North East industry. These days however the North East is home to a diverse range of industry from cars from Nissan, to mobile phones from Orange. Many other similar high profile businesses have chosen to make the North East of England their home bringing much welcomed stability to the area.

In terms of housing the North East is one of the few places in the UK where it is possible to purchase a property for around £50,000 and receive a positive cash flow in the region of £100.00 per month after deducting all associated costs. Compare this to many of the new build properties which are often offered to investors, which in many cases end up having to be supported by cash from the investors’ own pocket due to the monthly rent not fully covering the mortgage payments or high service charges (often not mentioned when busy talking up the discount!)

What sort of properties are typically sourced by myself? The types of property do vary, although in the majority of cases we source 2 or 3 bed-terraced properties, in good areas where we know there is a strong rental demand.

Generally speaking it is relatively easy to find properties where the rental income will exceed the mortgage repayment by the 130% that most lenders require.

The key however is ensuring that the properties will actually rent which is where local knowledge is invaluable. I like to think the local knowledge I have and the relationships I have formed over the years means I am in a great position to hear first about anything suitable in the areas I cover.

What also gives the investors I deal with extra confidence is the fact that not only do I source the properties, my company will then also manage any property I find. This should give the confidence that I will not just source any old property, it must be an area I am happy to manage and an area I expect to get tenants quickly. The fact I have built up a portfolio of over 40 properties like the ones mentioned above in the same areas should also breed confidence. The key is we actually practice what we preach. I must view around 10 properties a day to find a suitable one, and that is with all my local contacts and knowledge so we are still very particular about the deals we highlight.

So what about the future and the prospects for capital growth? Over the last two years certain parts of the North East have seen capital growth in excess of 20%, now clearly this is not sustainable every year. However we are predicting growth in the region of 10% for 2007 on the properties we are offering and we know some have already faired better than this. The key for us however is the fact that they will rent out, will continue to rise in value, are affordable – for example your mortgage repayment on a 25 year interest only mortgage is only around £280 a month - and are very solid investments tying up less than £10,000 of your money on each deal.”

Many thanks Mark – hopefully some useful information there. To ask Mark or myself a question on any of this information or on any UK property investment, email us at info@property-investment-deals.com

We still see UK property investment as a very important part of any UK investor's portfolio - and as long as there are attractive deals out there, we shall be sourcing them - we are personally buying as many in the UK as ever!

Next: Current UK Deals

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Check out an Example of a recent UK property investment buy to let deal we sourced!

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