Property Investment Services
Discover Distinction Wealth’s core range of property investment services – designed and delivered by experienced industry experts to ensure optimal results. Offered on a bespoke basis to all clients, our services aim to allow for a ‘hands-free’ investment experience where preferred, helping ensure the best possible decisions are made with regard to your individual goals, whilst minimising your workload, and maximising returns.
Property Portfolio Acquisition
Developing and expanding a property portfolio has long been hailed as an excellent investment choice for individuals and organisations across the UK.
Now, with the property market set to continue its astronomical growth and residential space in high demand, many investors are seeking to quickly expand, or establish a portfolio – taking advantage of low-interest rates and a significant shift by the population to the private rental sector.
Strategic sourcing has been the key to the continued success of property investors across the United Kingdom for decades. Whilst the property market remains lucrative and fast-growing, an investor’s choice of asset is still a highly influential factor in the success of their individual investment or portfolio – often making the difference between a moderate and significant return on investment.
In today’s volatile market, security can be key to a successful investment.
A fixed returns plan is the perfect option for keen investors seeking a stable way to bolster their income, or establish regular cashflow – offering ‘locked in’ returns and rates unaffected by external influences to be paid over an agreed period of time.
With the UK property market set to experience an increasing demand for spaces suitable for both residential and commercial development, land is proving to be a high potential option for investors of all calibres, offering an affordable opportunity to obtain a tangible asset inclined towards a significant return on investment – particularly where development is involved.
Property Portfolio Building
Building a strong, selective portfolio has been the key to the continued success of property investors across the United Kingdom for decades. Catering to the varying preferences of a wide range of individuals, property is unique in its ability to provide both rental income and capital appreciation – both of which are subject to continuous growth as a result of current supply and demand within the market.
Property is a long-established ‘safe’ investment choice – having proven itself to be both a financially rewarding, and relatively stable option for investors of all calibres. Unlike more volatile or inconsistent investment options such as stocks and shares, property, when chosen and managed effectively, is able to produce a consistent income – with the market appearing to be set for strong growth in the coming decade.
Though trends may be subject to change, it is important to consider that homes are an essential commodity, and will always be in demand, with increasing percentages of the UK’s population opting to rent.
With demand for property far outweighing current supply, house prices rising faster than ever before, and mortgage interest rates at an all-time low, investors have been able to, and continue to gain a significant return on their investment, with most able to benefit from capital growth of up to 6% year-on-year.
For the above reasons, property is now considered by industry experts and investors alike to be the strongest asset class, and is an excellent choice for investors looking to achieve a variety of objectives – including establishing a regular cashflow, building capital, or gaining high returns.
To further discuss the benefits of our property investment services, or to establish your individual requirements and goals as an investor, contact us for a free, no-obligation consultation. Our experts will be pleased to assist you.
Property Investment Services FAQs
What does a property investment company do?
A property investment company assists clients with investing in property by taking away the pressure that such a process comes with. Individuals looking to allocate their financial assets in property may lack time or expertise to complete the process themselves, making a property investment company a perfect solution for them. The services offered by real estate investment companies vary. Some of the services that a property investment company typically offers are; sourcing the properties, helping with the purchase process and liaising with solicitors and mortgage brokers on your behalf, as well as managing the property for you, or recommending someone who can do it on your behalf.
Investing in property through an investment company gives you access to superior quality properties and allows you to diversify your portfolio. You’re also more likely to make a sizable return on your investment as your money is being handled by experts.
Which property is best for investment?
To decide on the best property to invest in, you should ask yourself what it is you want? Property investors implement different strategies and choose to go for types of properties that suit their individual objectives. Historically, buy-to-let properties have attracted many investors to the UK property market, offering a regular source of income and a potential increase in the value of the property over time. However, even with a profitable investment that a buy-to-let may be, there are a couple of things to consider. Different rental properties offer different potential capital gains and rental yields.
Capital gains refer to the average increase in the value of a property over a period of time. Rental yield is the amount of rent money you can make from your property after all your costs have been covered. Some properties may give you high capital gains but not a great rental yield, and vice versa. This depends on several different factors including the size and age of the property, as well as the location.
When deciding on which property to invest in, you should calculate both of the above and weigh them up against your goals.
How do you calculate if a property is a good investment?
The best way to calculate if a property is a good investment is to calculate the rental yield and capital gains. Rental yield is the amount of rent money you can make from your property per year after all your costs have been covered. Capital gains refer to the average increase in the value of a property over a period of time.
There are different ways to calculate the rental yield but one of the simplest ways is to calculate the net annual income (annual income minus the annual costs) and then divide it by the value of your investment, including all fees you paid in the process, and times the result by 100%.
To calculate capital gains you’ll need to research what is the average percentage increase in property prices in the area where you are looking to invest in. For example, if property prices go up by around 2.5% each year in that specific area, and you are looking to buy a £200,000 property, you can use these numbers to calculate that your annual capital gains would be around £5,000 if all other variables stay the same.
Performing these calculations on all the properties you are considering and assessing the numbers in terms of your goals will help you to decide which one meets your needs and requirements best.
What is a real estate investment fund?
Real estate investment funds are combined sources of capital that are used to make a real estate investment. These investment funds are usually formed to pool in investor money and collectively purchase securities, which can include real estate, as well as stocks and bonds. There are different types of real estate investment funds, such as real estate mutual funds, real estate exchange-traded funds and real estate private equity funds. Investing in real estate funds offers several benefits. A significant advantage of using real estate investment funds is diversification which helps to reduce risk. Other notable benefits include a lower initial investment threshold and ability to be a passive investor as you do not need to deal with the management of the properties yourself.
Are buy-to-let properties a good investment?
Buy-to-let properties have always been seen as a lucrative investment by landlords in the UK. However, with the recent changes, whereby the mortgage interest relief is no longer available, sceptics are questioning whether investing in this type of property is still worth it. From 2020 landlords have been given a flat-rate tax credit based on 20% of their mortgage interest. What this means is that those top-rate taxpayer landlords may now find themselves having to pay even more tax on their income, which eats into their profits.
For new investors, buy-to-let properties may still provide a steady flow of monthly income, without the heavy tax bill. The recent tax changes won’t have such an effect on those who are on the basic tax rate.
Depending on the location of the buy-to-let property your rental yield can be anywhere between 3% and 8%. At the same time, you will be benefiting from capital gains, and by taking out insurance you can cover yourself against loss of rental income, damage and legal costs.
On the other side, buy-to-let properties are a high-maintenance investment and become an asset that cannot be liquidated fast in case of an emergency.
Alternatives to buy-to-let investments include, but are not limited to, real estate investment funds, bonds, peer-to-peer lending and investing in shares.
Quality property investment services
Distinction Wealth boasts an unrivalled reputation for the consistent provision of significant returns and high levels of client satisfaction. Read about our client’s investment experiences with our property investment services below:
If you are looking to invest in property it’s best to have a competent property specialists that can help you out achieve your financial freedom; this is Distinction Wealth
The team at Distinction Wealth are driven individuals and educated ones too. Their knowledge of property is excellent, in particular which strategies are best utilised to get maximum benefit for their clients. I enjoyed working alongside Distinction Wealth and would happily work again with them in the future.
Distinction Wealth are experts in their field and have offered up some great advice on ventures we were looking to pursue. I would strongly recommend to connect with Distinction Wealth and utilise their wealth of knowledge and experience.