Six Types of UK Investment Property
Axis has developed SIX investment strategies for UK investment property. These strategies meet the different needs of investors but share one common thread... they all deliver way-above-average profit and return on investment.
Every property investment featured in the UK section of the Axis website fits one or more of these investment strategies!
Discounted New Build Flats and Houses - The First UK Investment Strategy
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Description |
Well located new property from reputable builders. Mostly small to medium developments with good letting potential. |
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Tenant at Purchase? |
Not usually, but sometimes developer has rented new property temporarily until it is sold. |
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Location |
Anywhere in UK but majority that fit our investment criteria are North or Midlands. If located elsewhere discount will usually be lower. |
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Target Financials |
20%-40% Below Market Value. 6%-10% gross rental yield depending on all factors |
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Typical Cash Requirement |
Typically £5,000 to £25,000 to purchase, using the Axis model of assisted financing with bridging the deposit. Sometimes opportunities are only for cash buyers. |
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Axis View |
Largest discounts achievable, particularly on flats. Lowest cost to buy. Low maintenance. Good balance between rental income and future capital growth. Backbone of many portfolio's, particularly for younger investors with limited investment capital and a long time horizon. |
Check out investment opportunities with Discounted New Build flats and houses.
Discounted Resale Property - Flats and Houses - The Second UK Investment Strategy
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Description |
Houses and flats (purpose built and converted) in good locations and in good condition. Age from Victorian to almost new, including ex-local authority. |
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Tenant at Purchase? |
Sometimes |
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Location |
Across UK, more in the North and Midlands. We actively seek London and South East properties but discounts and yields are lower. |
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Target Financials |
10%-30% Below Market Value. 6%-12% gross rental yield depending on all factors. |
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Typical Cash Requirement |
Typically £5,000 to £25,000 to purchase using the Axis model of assisted finance by bridging the deposit. Sometimes only the standard purchasing model can be used which requires a full deposit of 25% to 35% of the purchase price. |
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Axis View |
Highest yields achievable. Often tenanted, which prevents a void on purchase and confirms rentability, but makes property difficult to inspect internally. Condition more variable, expect higher maintenance. Inner city locations can be excellent and prices are usually cheaper than new. |
Check out investment opportunities with Discounted Resale flats and houses.
Sale and Rent Back - The Third UK Investment Strategy
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Description |
Private purchase from motivated sellers wishing to remain as long term tenants. Subject to new regulation from the FSA (Axis complies!) Mostly family property in good locations. |
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Tenant at Purchase? |
Yes always. |
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Location |
UK wide including North, Midlands, South and London |
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Target Financials |
Varies depending on location. Up to 30% BMV generally, but max 20% in London. Yields up to 8%, but maybe 5% in London. You have to balance price and yield against certainty of tenancy and often property is difficult to purchase as a typical buy-to-let. |
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Typical Cash Requirement |
Net purchase prices from £100K to £300K. With assisted financing investment is typically £8K to £30K. South of England and London properties may require more cash to make numbers work. |
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Axis View |
Individual properties often in good family locations. Excellent discounts and proeprties in areas that are otherwise difficult to find eg London and South. Rental yields more modest, but balance that against a tenant who could be there for 10-20 years and who takes good care of the property. You also avoid cost of managing agent, saving about 12% of rental cost. A low risk proposition. |
Check out investment opportunities with Sale and Rent Back property.
Multi-Let High Yield Property - The Fourth UK Investment Strategy
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Description |
High yield with guaranteed income and complete 'hands-off' operation. Houses for asylum seekers and people on bail. Government scheme with long term agreements typically 2-3 years with appointed management company who looks after everything. Also student property (not guaranteed tenants) with even higher rental yield. |
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Tenant at Purchase? |
Yes, almost always |
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Location |
Specific postcodes requested by Government, typically North, North-West and Midlands. Student property in convenient locations for major city universities. |
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Target Financials |
Buy at market value with incentive package. Rental yield typically 6% to 9% AFTER management costs. Student property typically 8%-12% net! |
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Typical Cash Requirement |
Cash deposit of 25%-35% required. Typically £25,000 to £50,000 per property. Many clients pay cash in full. With a 75% mortgage you can expect a 15%-25% return on your cash invested. |
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Axis View |
Specialist product perfect for the 'hands-off' investor with cash to invest. This is a very low risk strategy with an excellent net rental yield. Fully managed. Ideal alternative to cash investments in banks and building societies returning up to ten times more on your cash! |
Check out investment opportunities with Multi-Let High Yield property
Buy-Refurbish-Rent - The Fifth UK Investment Strategy
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Description |
Focused on two and three bed terraced houses, comprehensively refurbished and rented to local tenants. Full turn-key package including sourcing/refurbishment/tenant finding. |
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Tenant at Purchase? |
Investor buys property prior to refurb, so no tenant on completion. However all properties come with Axis Five Star Guarantee that ensures you rent quickly or your mortgage is paid! (subject to terms and conditions) |
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Location |
North and North-West |
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Target Financials |
25% Below Market Value after refurbishment. 10% gross rental yield |
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Typical Cash Requirement |
£20,000 to £40,000 cash investment for 6 months, taken out on re-mortgage with new valuation. Leaves little or no cash in the deal! |
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Axis View |
Excellent product for investors with some cash that they can then recycle every 6-9 months leaving them with good rental houses at substantially below market value and in excellent condition. They are fully refurbished by our team with rental yields to 10%. A very good 'all round' package enabling investors with limited resources to build a solid portfolio one property at a time. |
Check out investment opportunities with Buy-Refurbish-Rent property.
Bulk Purchase - The Sixth Investment Strategy
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Description |
Large property deals suitable for major investors, consortia, property funds, housing associations etc. Bulk deals typically range from £1m to £25m. |
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Tenant at Purchase? |
Sometimes. Every deal is different. |
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Location |
Nationwide |
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Target Financials |
20%-50% below market value. Rock bottom pricing for investors with substantial resources and ready to move quickly. |
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Typical Cash Requirement |
Variable funding required but bulk investors will already have access to suitable commercial funding. |
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Axis View |
Bulk investors will benefit from letting us know their specific requirements. We maintain a register of investors so that we can quickly match deals with the right clients. We frequently know of 'off market' deals that offer great value. Contact Us |
Bulk Purchase property is not posted on the website. If you are currently in the market to buy, please call us on 01273 447 300 or email bulk@axiscontact.com to discuss your requirements.
Questions? Call us on 01273 447 300 or email questions@axiscontact.comWhere Next?
Browse Our UK Investment Property Deals
