Higher income properties are more popular with buy-to-let investors

Posted under General by Alan

Property investors are acting wise. They have started re-evaluating their portfolios and opting for cash positive, high income property, according to property investment specialist Assetz.

As costly mortgages started affecting returns on investment, investors were finding their buy-to-let property cash negative. This made higher income properties like hotel rooms, holiday homes and student accommodations more popular.

According to Chief Executive of Assertz, Stuart Law, investors were always advised to supplement capital growth property with good income rental income property, but they relied more on speculative property and lost in the market. This situation and increasing mortgage costs have compelled investors to re-evaluate their portfolios and attain balance by acquiring higher income property or sell cash-negative units as last option.

This should be the approach of investors even if a property lends capital growth over the years, advised Stuart Law. The property should be cash positive or investors should invest in high income property for balancing cash-flows out,

He further added that UK holiday homes, student and hotel rooms were top resources for reliable rental income along with capital growth.

According to Stuart Law, demand for hotel rooms and student accommodation has been high. They are secure investments for high returns and rental yields to the tune of 8%. UK holiday lets are giving high yields at low entry costs, he added.