Buy-To-Let
In The United Kingdom
Making the most of your Rands
BY ANDREW WALKER
A s a professional property investor, I believe property is the ideal vehicle for wealth creation. My wife and I moved to the UK in 2005, which is where we started growing both our Property Portfolio as well as our Property Management Company.
We are now back in South Africa and live in Johannesburg, but we still have a strong UK team in place, which helps us continuously grow our property portfolio without having to be there full time.
I have been investing in the UK property market since 2005 for a number of reasons. These three things make it obvious for me to invest overseas: 1. Diversification 2. Pound lifestyle 3. UK Lending options
UKPP was set up to help the average South African invest in the UK. Therefore, if you would like to find out more please get in touch so that we can assist!
In this article, I share my insights and key learning’ s. Yes, South African’ s can invest in Buy- to- Lets within the United Kingdom, let me show you how …
Firstly, what is a Buy- to- Let?
A buy-to-let is an investor’ s term for an owned property that is rented out on one lease agreement.
It doesn’ t matter if the property is a 1 bedroom, 3 bedroom or even 5 bedroom house with separate individuals, if there is only 1 lease agreement in 1 household, it constitutes a buy-to-let.
The buy-to-let strategy is perfect for creating passive income, which builds your path towards financial freedom. It’ s a low risk, low return strategy, and a great place to start your investment journey.
Why should you invest in Buy- to- Let investments?
Quite simply, the Buy- to- Let Strategy will be the foundation of your UK Property Portfolio.
We don’ t tend to invest in New Builds but rather your average 3 bedroom home, which the average person can afford to rent or buy. This immediately gives us an exit strategy if we ever decided to get out because the property is already marketable.
What areas do I target for investment?
My personal investment focus is in Grimsby, which is located in the North of the UK.
Once the world’ s largest fishing port, Grimsby is today a thriving modern town offering excellent facilities for education, shopping, leisure and work. Grimsby is synonymous with the food industry and is known as‘ Europe’ s Food Town’.
Thousands of people are employed by around 500 food-related businesses, ranging from the modernised fish docks and market through to the global headquarters of major food brands like Young’ s.
Beyond food, the rise of new industries, such as renewable energy and digital industries are helping to create a diversified and prosperous economy.
I have been investing in Grimsby because I see high tenant demand within a diversified economy and a diversified work base. I love seeing a healthy, strong mix between different sectors and different industries.
What types of properties do I invest in?
We invest in two types of properties.
The first is your standard 2 or 3 bedroom Terrace property, which consists of a reception room, kitchen and bathroom. Most of these houses have a very small front garden with a long narrow back garden.
The second is where a Terraced Property has already been converted into 2 or 4 flats. We are seeing Gross Yields of 11 % and above using this strategy.
What types of tenants do I focus on?
We mainly focus on housing the hard-working middle class. I have found that by offering a high standard of accommodation, we are attracting the right demographic of tenant and therefore getting longer lets with happier families.
50 SEPTEMBER 2017 SA Real Estate Investor Magazine