Based in Manchester, the heart of the Northern Powerhouse, yieldit specialise in the sale of high-yielding buy to let property. They work with property investors looking to buy or sell, and you can find their latest investment property for sale in the UK on our search portal Truffull.
Our Co-Founder Jonathan Barker recently spoke with The Professor from yieldit, gaining an expert insight into the world of residential buy to let property investment and the changes to the UK investment property market predicted by yieldit. Below is our full Q&A with The Professor.
As your company is specifically involved with residential investment opportunities, what are the most important factors that investors look for when searching for their next buy?
A lot of the time it does depend on what kind of tenant you want to attract, as different types of tenants have different requirements and that will affect the type of property you choose. That being said, location is also an important consideration as it can determine the value and appeal of your property to potential tenants; what are the local amenities and infrastructure like? Investors should also think about the condition of the property – are you prepared to work on a property, or would it be more worthwhile to pay a bit more for a newer build that requires very little work. Finally, there’s also the rental returns on the property, as this will determine how much money your investment will make. At yieldit we make this as obvious as possible for the investor by providing a full yield-driven financial breakdown on all of our properties.
You have a large number of properties for sale across the country, where in your experience are the hotspot buyers looking at in 2019?
We emphasise the NET yield of a property to our investors rather than chasing the latest hotspot or whatever market is currently enjoying a boom. Investing is about achieving the returns you want and that should be a more important consideration than following the crowd to the next trendy buy to let market. Of course, some of the best yields will be found in traditionally strong markets like the North West, but we try not to limit investors’ horizons by directing them to only one or two top places as that may result in them ignoring a high yield in a less popular place.
With recent changes in tax implications to buying residential property and Brexit, has this affected the number of potential buyers in the market?
Not at all. We found that investors were fairly cautious at the start of the year but have been carrying on as normal. The same could be said for the change in tax implications as well; investors are doing their research and making these changes work for them. Overall, we’re pretty confident that the UK property market is thriving.
The UK property market continues to see investment from overseas amidst the Brexit uncertainty particularly in London, do you see international investors expressing good interest in other areas outside of London?
We have not noticed a particular drop off from overseas investors despite Brexit uncertainty. There is always a percentage of people who get distracted by the headlines, but most serious investors can see that there is still a shortage of available rental homes and an increasing number of people entering the market – the perfect recipe for high returns.
Regarding locations, many international investors are sticking with London as they are familiar with the city, but recent years have seen more and more overseas buyers feel comfortable with other regions of the country, particularly the North. Buy to let investors are, at heart, most concerned with high and stable returns and they are happy to invest wherever they can be found.
As yieldit are based in Manchester, the hub for the Northern Powerhouse, has this attracted strong interest from investors outside of the city looking to buy in Manchester?
Manchester has always been an easy location for us to sell, partly because it’s an area that we are particularly familiar with, but it’s mostly down to the fact that Manchester has a reputation for being a buy-to-let hotspot. The city has all the attributes to be a fantastic buy-to-let location: A thriving economy, great transport links and lots to offer in terms of things to do. Its property market has also sky-rocketed in recent years, with house prices rising by 30% in the last five years according to Zoopla. Not to mention that the population in Manchester is rapidly growing – according to Manchester City Council, the population is set to grow to 644,100 by 2025, so the demand for rental accommodation is set to grow even stronger. This has stood out to investors looking for their next successful buy-to-let opportunity.
When landlords are considering selling their investment and potentially using your services, what can they do to achieve the best return from disposing and to attract new investors?
Selling through yieldit is slightly different than selling through a high street agent; we specialise in selling property with tenants in place which means you do not have to evict anyone before disposing of your property, this is also beneficial for the buyer as having a sitting tenant means that they will have instant income as soon as the sale has gone through. As mentioned previously, we also focus on NET yield when making a potential sale so, if you want to sell fast, you need to take that into account when setting a sale price.
Other than that, our recommendations are the same as for selling any property – make sure that it is tidy and well presented for photography and viewings, and that all maintenance issues are taken care of.
Having a diverse portfolio can be seen as favourable by many investors, do you tend to see investor buyers focusing in one or two key areas or perhaps buying opportunities in a number of areas across the country to achieve various returns on their investment?
It depends entirely on the individual. If an investor has a deep knowledge of a particular market, they may choose to focus their portfolio wherever that is. On the other hand, some investors are more interested in spreading their investment across various markets and types of property in order to reduce their exposure to regional fluctuations. We discuss each investor’s personal strategy with them at the outset and make recommendations based on their personal goals.
What advice could you give to a first-time property investor who is looking at buy to let opportunities?
You should start off by identifying your target market in terms of tenants, as this will then help you to choose your chosen region and what to look out for in your chosen property. Another thing to remember is that you are looking for a property to rent out, not to live in yourself, so try not to let your own personal tastes influence your decisions. A surprising number of investors seem to forget this, and they invest in properties that would appeal to them but not necessarily to any potential tenants.
How do you see the residential investment market in 2020 and beyond?
We are confident that the market will continue to grow in the future. The fundamentals underpinning it are strong and investors can be confident that there are still impressive returns on offer for both first-time investors and seasoned professionals.
If you’re considering investing in buy to let property, why not browse our investment property portal to see the latest investment properties for sale across the UK with yieldit.