Thirlmere Deacon Property Investment
Positioned in the very heart of the capital yet surrounded by the enchanting Marylebone village, this impressive building has been spectacularly transformed by an award-winning development company to offer idyllic Prime Central London residences, combining modern design with 18th century architecture.
Beautifully blending city life with luxury living, each contemporary apartment boasts modern comforts, the latest technologies and stunning interior design, many of the apartments also enjoy private terraces.
Not only can residents enjoy the local village atmosphere, fine eateries and boutique shops found in Marylebone but being so centrally located, the building is conveniently positioned for access to many of central London’s finest attractions. Mayfair, Oxford Circus and Soho are all within easy reach, and Regent’s Park is within a short walk of the building.
Resilient, stable and tangible are all accurate descriptions of UK rental property investment but the question remains, how safe is investing in property?
Throughout the pandemic, property prices increased as the more volatile stocks and shares plummeted. Previous economic events have also demonstrated the resilience of property. In the 2008 economic crisis for example most property markets fell by around 20 or 25%. Comparatively, stocks fell dramatically in just a few weeks and by 2009
some stock market indexes were reported to have fallen by as much as 50%.
History shows us that whilst UK property price growth might peak and trough over the short term, overall property prices are on an upward trajectory and this is predicted to continue for many years to come as the demand for homes in the UK significantly outweighs the supply. Certain regions of the UK are predicted to see steady price growth over the next 5 years with forecasts citing as much as 30% growth in values.
Putting aside the resilience and stability of property investment, perhaps one of the greatest appeals and a factor that makes property a far ‘safer’ investment than other asset classes is that it is a tangible investment. You can see and touch a property, it is a real, physical thing, not just numbers and lines on a screen.
The risks of investing in property
Every type of investment comes with its own risks but these can be easily mitigated by investors who make well-informed decisions.
Here we outline the risks of investing in property and how these can be overcome:
· Negative cash flow – an investment property should pay for itself but gaps between tenancies can result in no rental income and interrupt cash flow. Whilst it’s good practice to have a contingency fund in place, those investors who buy in good locations and secure a property type that is in high demand rarely experience disruption in cash flow.
· Fluctuations in the property market – there’s a good reason why the UK property market is deemed to be one of the safest in the world for investment. Where many property markets in other countries have seen dramatic fluctuations in prices, overall the UK has weathered many economical and political storms and property prices overall have continued on an upward trajectory.
· Too time-intensive – for those who are time-poor, the fear of having a property investment portfolio that takes time to be managed can be off-putting. The good news for investors is that professional management companies can take care of all the day to day and ensure you, as a landlord, are up to date with the necessary paperwork.
How to be a successful investor
1. Choose your locations wisely – Whilst price growth across almost the entirety of the UK is on an upward trajectory certain areas are set to propel more than others. Where you invest will dictate the level of success.
2. Buy off plan – This isn’t to say that you can’t be successful investing in properties that are already built but to maximise your potential return, buying off-plan is usually the best bet.
3. Get a buy-to-let mortgage – Leveraging is a bountiful tool available to investors – there’s no other type of investment where you can put in a small percentage of the total value, have the bank fund the remaining amount and you, as the investor collect all the capital appreciation.
4. Be a good landlord – Being a good landlord doesn’t have to be hard work, in fact, the easiest way to do the best for your tenants is to employ a reputable and professional managing agent to take care of your property, ensuring the tenants are happy in their home. Happy tenants pay better rent and stay in a home for longer, reducing the risk of any void period between tenancies.
5. Build a portfolio – Scaling your property portfolio is a natural progression, building the number of investment properties you own. This can be done entirely organically with very minimal additional financial input.
Investing in property safely
If there were a perfect guide to investing in property we’d be the first ones to share it but just as there is no manual for how to practically drive a car, or even how to raise a baby – much of investing is down to personal circumstance, certain scenarios and intuition. Trust your gut and if in doubt, consult the experts.
The team at Thirlmere Deacon aim to foster an individual’s existing knowledge and enable investment in property safely and successfully.
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