Top 3 reasons why you should invest in apartments
In the last two decades, the housing market has faced a massive decline in homeownership, especially amongst millennials. The number of young people owning a home has dropped from 65% in 1996 to 27% in 2016, which has caused an increase in rented accommodation and what has formed the term Generation Rent. While this may not be great news for young people, it benefits investors who have already invested in buy-to-let properties or plan to. The most popular rental properties at the moment are apartments, especially those that are pre-furnished and are located in prime areas. These attract both students and young professionals, who prefer properties located in the city centre, where they have direct access to their place of study, work opportunities and leisure activities.
Putting your capital into apartments is an extremely clever way to invest, especially if you conduct thorough research beforehand. To help you decide if an apartment investment is right for you, take a look at the following benefits, which will allow you to achieve success in the property investment market.
Demand is high
As mentioned previously, the demand for ownership is currently on a downward spiral, which is why investors are shifting their focus from homes to apartments to reap the financial benefits. There are now so many apartment developments underway to cater for the younger generation’s demand for city-centre properties, so you should make sure to snap the deals up while you can.
Property investment companies like RW Invest are helping to meet the demands of the people by working with established developers to create luxury apartments in both Liverpool and Manchester. Many of their apartments feature high-end amenities such as spa facilities, gyms, cinema rooms, and more, which are guaranteed to grab the attention of potential tenants.
One of the biggest misconceptions associated with apartments is that they are a short-term solution. While this may have been true in the past, apartments are now viewed as long-term and lucrative investments, due to the massive demand for housing in the UK. After all, everybody needs somewhere to live. Many young people are now looking to live in an apartment for more extended periods, rather than using it as temporary accommodation while saving up to buy a home.
To ensure your investment is built for longevity, you should assess the location and capital appreciation potential to establish whether it is worthwhile. The two come hand in hand, because the better the location, the more likely your property will appreciate over time. Make sure you look for a property in an area with high rental yields that also offers access to employment opportunities and excellent transport links. This will ensure that you receive consistent tenant interest as well as the monthly income you need to fund your lifestyle, savings or your next venture.
To achieve success as an investor, it is crucial to grow a profitable portfolio. While many experienced investors advise you to diversify your portfolio to ensure your investment are protected, however investing in a number of apartments can actually allow you to achieve success quickly. This is because multi-family properties are much easier to purchase than several single-family homes, as you will be dealing with the same person, rather than 20 different sellers, agents and mortgage brokers. You may also receive a discount for buying in bulk, which will allow you to get more for your money.