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Investor Partners
Real estate investment can be a very rewarding venture - offering the potential for long-term wealth building, passive income, and portfolio diversification. However, it requires time commitment, careful planning, research, and a thorough understanding of the market to make informed decisions and maximise returns. Our Investor Partners at
Manders Realty choose to work with us because of our expertise in this area and you can too.
We are able to secure and establish high-yield real estate that consistently outperforms many other investment options by leveraging our knowledge, network, and position in the market, and our valued Investor Partners receive exceptional returns.
Why Are HMOs Considered a Low-Risk Investment?
Resilient to Arrears
With each tenant having their own tenancy agreement, rental income is spread across multiple sources within a single property. For example, in a six-bedroom house, in the event that one room is vacant for a short period, the remaining five rooms continue to generate significant rental income.
Higher Rental Yields
HMOs generally provide 3-4 times higher rental returns in comparison to single-let properties due to multiple tenants contributing to the total rental income.
Potential for Greater Property Value Appreciation
Some mortgage lenders may assess HMOs as commercial real estate rather than traditional residential homes, which results in valuations that are greater than a normal ‘bricks and mortar valuation’ and thus lead to more favourable refinancing options.
Adaptability to Market Conditions
HMOs offer flexibility to adjust to various market needs if necessary, such as student accommodation, working class lets, or upscale co-living spaces, making them more resilient to market fluctuations.
Increased Demand
There are only 434 homes for every 1000 people in the UK, a shortfall of 4 million homes. Furthermore, the demand for housing is increasing. Due to limited supply of suitable housing, HMOs situated in prime locations experience low vacancy rates, enhancing their investment stability.
Why do we invest in UK Real Estate?
Investing in the UK real estate market offers both stability and growth potential that is fuelled by high demand, economic stability, and attractive rental yields. The UK provides a transparent and robust legal framework for property ownership and investment, including clear property rights and dispute resolution mechanisms that offer protection for investors and tenants alike.
As a global economic hub, the UK attracts talent from around the world, and its advanced infrastructure and connectivity increases its appeal for global investment. The real estate market has shown resilience through economic downturns and uncertainty, and the robust and resilient UK market is expected to only continue, making it a reliable long-term investment option, especially in high-growth cities with a potential for significant property value appreciation.
Investment Case Study
Why We Loved This Property
Location
The property is within a 15 minutes walk of Maidenhead centre where a £500million regeneration project is underway and Maidenhead Station is located. The fastest train from Maidenhead to Paddington takes only
17 minutes, Heathrow Airport is only 23 minutes away!
Purchase Price
The cost of a property with the same floor area in Maidenhead is £589,000 on average. However, leveraging our knowledge and market insights, we secured this property for £411,500, achieving significant immediate appreciation.
Refurbishment
The property is being transformed to offer six double bedrooms, each with its own ensuite, alongside a modern, well-equipped kitchen, a stylish co-living space, a garden patio, and even a home gym! This conversion from two bedrooms to five bedrooms is achievable within Permitted Development regulations due to the substaintial floor area.
Commerical Valuation
Following refurbishment, the property’s value benefits from forced appreciation and its designation as a HMO. This facilitates favourable refinancing terms, enabling us to repay our investor partner while retaining funds to reinvest in new homes.
Investor Partner
Real estate is a well-established and tangible investment strategy, making it a favourite for many finance-savvy individuals. Our valued investor partner for this project receives an 8% return on their investment with interest paid monthly, significantly outpacing traditional savings accounts. This hands-free approach allows them to earn without the need for specialist knowledge or time committment.
