The benefits of a buy-to-let investment strategy

Thinking about investing, and trying to weigh up some of the different options that are out there? Here’s a short guide with some pointers on why buy-to-let property investment might be right for you.

It’s a secure investment strategy

There are a ton of different investment types out there that you can go with, of course varying in price, buy also varying quite a bit in terms of risk, too. The stock market, for example, depending on the type of stocks that you’re going with, can be a lot more volatile than something like property investment. A tactile, long-standing investment, the property market is a fantastic backbone to any investment portfolio, flourishing in value over time in the right area as a result of projected house price growth, demand, and development/regeneration in the surrounding area.

To show an example, if we look at the UK market, guides by RWinvest indicate that Liverpool is one of the most promising areas for investing in property. This is due to its general affordability when compared to other areas such as London and even Manchester (which has started to soar in recent years). These cities also have a lot of ongoing regeneration projects on the waterfront and beyond, and demand from young people looking to live and work in the area. A ‘perfect storm’ such as this is exactly what an investor should be looking for in a property investment.

You can start making returns right away

Most entrepreneurs understand that when undertaking an investment strategy, it’s going to a be a long-term process, and they have to be comfortable with tying up their capital up for a long time without seeing anything back. With a buy-to-let investment, however, not only can you stand to make a lucrative return on investment through factors such as capital appreciation (house price growth over time when investing in a promising, developing area), but you can also start making money right away through rental income.

Providing that you have an attractive property in a demanded area, keeping your apartment/property inhabited, you can start to recoup the cost through these consistent payments, and forge quite the reliable income stream, something that you just can’t get with many other types of investment.

It doesn’t have to be a full-on investment experience

Many that manage a range of different investments often find it difficult to keep on track of everything, and so prefer a hands-off strategy that simply looks after itself and grows quietly in the background. You might think that acting as the owner of a buy to let property would put a lot of responsibility on your shoulders, but there are many popular hands-off options for this, too.

Many investors with apartments in modern city centre developments have them fully managed on their behalf by a concierge service that deals with the day to day ongoings, general maintenance and tenant issues for a small percentage of the rental income. This means that you as an investor can focus on your main projects, benefitting from the consistent rental income while not having to play the role of landlord on a 24/7 basis.