Thinking beyond the present, you may be considering your assets, and how to secure wealth for your family. The international stock market can prove historically volatile, and bonds are also determined by external factors, such as interest rates. An asset that provides security for international investors is UK property. Investing in property provides an unparalleled asset that can be transferred throughout generations, and is an asset that has historically proved it can withstand the test of time.
Read on to discover why property may be the most powerful gift you can leave behind, and why it’s time to consider ‘family-first’ investing.
Why property?
Generally regarded as a mid-to-long term investment, property investment in the UK offers one of the most secure investments available. With a history of strong, consistently upwards trending returns, property is an investment option that offers unrivalled benefits.
While cities like Dubai can offer strong returns with the ‘buy and flip’ investment model, for a more stable, mid-to-long-term investment, UK property offers peace of mind that your asset will appreciate in value steadily over time and also offer impressive rental yields as passive income.
As a generational asset to be passed down to family, the property will likely see a major increase in capital value. Since 1960, UK house prices have increased by a staggering 365%, with prices showing no signs of slowing.
Rental income offers a regular income each month, and if you select a property in a highly populated, sought-after area such as one of the top UK cities, it is likely you will receive a very high occupancy rate. Rents in renowned UK city, Manchester, have recently soared by 46% over the past five years, with Birmingham also seeing major increases.
The next generation
Passing your property asset onto the next generation is a common, stable way to secure family wealth. You may have children who are interested in international study, to be educated in the UK, which is home to over 160 universities. Manchester and Birmingham boast some of the highest ranking universities in the UK including Russell Groups The University of Manchester and The University of Birmingham, and both have an impressive 50% graduate retention rate.
Many international parents in the Middle East and Asia choose to buy an investment property in the UK to visit their children at boarding school, college and university. Owning a property can help to offset tuition fees and provide a home for your child to live in while they study, depending on what stage of their education journey they are at.
With a talented young work force choosing to remain in these cities, major blue-chip employers have selected Manchester and Birmingham as office bases, including PwC, Deloitte, HSBC, BBC, Booking.com and Nike to name a few. An abundance of opportunities are therefore available in these top UK cities, encouraging a thriving job market.
Due to these ever-growing job opportunities, your child may decide to remain within the city after completing their education to pursue their careers. The property you’ve invested in, can see them through many stages of their life, from studying, to graduating to beginning their careers. The property can then even be passed onto their child, as a legacy asset.
Choosing the right property
In addition to choosing the right location for the highest yields, the type of property also plays a significant factor on your returns.
Most common property investments in the UK are a house or an apartment. While there are pros and cons to both, apartments are traditionally more accessible to buy in sought-after areas such as thriving UK cities, and are in higher demand.
Apartments featuring luxury finishings and sought-after amenities are incredibly popular, as tenants now seek higher quality accommodation. Consider the various features each property offers, as an apartment with a range of amenities such as a swimming pool, and premium fitness facilities will be able to command a higher rental price. Features such as co-working lines are also in-demand due to the increase in hybrid working. Outdoor space has also become a top priority for city center residents.
By selecting a property that is of high quality, and is in a development that boasts a range of sought-after amenities, you are much more likely to achieve a higher occupancy rate and higher yields.
Nurturing your asset
As property investment usually requires considerable capital to purchase, it is vital your asset is well maintained, particularly if you are considering passing the property down to future generations.
General upkeep and maintenance of the property will be required throughout the years to ensure it retains the highest value possible. If you decide to let the property out, the tenants will also need to be managed with queries and payments.
Many investors opt for an in-house letting service, as these companies handle all aspects of letting out a property. Companies such as Select Residential, Select Property’s in-house property and tenancy management company, provide a fully managed service, from initial property viewings, managing the tenants’ rental period and also assisting with renewal.
Investing with Select Property
Investing in UK property is a significant decision, especially if you are purchasing property as an asset to pass down through generation. At Select Property our experienced property consultants can assist you in your property investment journey, identifying the best opportunities for you across the UK’s top cities.
We have a range of investment opportunities available across both Manchester and Birmingham. As a leading UK property developer, we have over 20 years experience in supporting investors to achieve the highest returns and global offices in Dubai, Shanghai, Hong Kong and Riyadh. Contact us here to begin your UK property investment process.