The return on investment (ROI) for rental properties can vary massively, depending on a range of factors such as rental demand in the location, property type and how good a deal you get when purchasing the property. However, before buying a property to rent out, experienced investors should be able to accurately calculate the ROI they will generate from the deal.
A good ROI would usually be at least 5% and upwards, London is currently around 2-3% but there are more lucrative deals that can make you more money than that. Investment’s in Birmingham and Manchester are currently 5-7% while Liverpool and Sheffield are 7-10%. The challenge is finding the type of investment that will deliver a higher ROI.
For investors who prefer to have minimum effort in finding deals and projecting the finances and ROI, working with investment experts such as Advantage Investment is a better option. Our investment analysts use years of expertise and knowledge of the rental property market to calculate the financials to identify opportunities that present the highest ROI.
With property investments where you are simply required to provide a capital payment, the ROI will be much easier to calculate, compared to managing rentals and paying for maintenance or being affected by voids. So, if you are looking for a guaranteed ROI or at least a relatively certain approximate, you need to select the right deals.
ROI and Rental Yields
To give you an idea of typical ROI and rental yields that are out there if you can find them, Advantage Investment currently has the following residential property investments:
Ancoats Gardens, Manchester
These luxury apartments near Manchester city centre have been developed to generate a high ROI due to the high specifications of the building facilities and fittings, as well as the much in-demand location, with Manchester being named the world’s 3rd best city.
Apex Lofts, Birmingham
The Apex Lofts have a stunning appearance and have been developed to provide high-quality apartments in Birmingham to meet increasing rental demand due to the large number of tech startups and other enterprises now being based in the city. This investment has an expected yield of circa 5%.
St Anne’s Gardens, Liverpool
These apartments are ideal for investors with smaller amounts of capital, as you can purchase at below market value and benefit from the regeneration that is taking place in the area. The apartments have been developed to generate excellent rental yields, capital growth and a fast ROI. The expected Net return is 7-10%.
Whether you are an experienced property investor looking for investments with the highest ROI or are completely new to investing, we can help. We are offering a discounted portfolio review in Q1 of 2022, so now is the perfect time to get started.
