Investing in Bricks & Mortar
With interest rates remaining low, and no sign of any significant increase on the horizon, it’s been a tough time for savers looking for a stable return of more than 1% or 2%.
But one investment has proven to be historically dependable and continues to deliver excellent returns – buy-to-let property investment where typical returns are around 5% before any form of market driven capital growth is considered.
Demand remains strong
The rental market has always been strong on the Island and, with the lack of 90%+ mortgages available from Island lenders, people in increasing numbers are choosing to rent. Add to this the very low unemployment figures and you have a strong rental market and, more importantly, the potential for consistent returns.
To attract quality tenants, you need quality property with modern interior layouts in great locations. Not only do tenants prefer new properties because there is less chance of anything going wrong, but also because of their modern specifications and lifestyle draw, meaning they are both easy to fill and able to attract a premium. The fact that our last 5 developments have all sold out, and the recent Cronk Cullyn development of 59 new homes was 75% sold ‘off-plan’ in just 3 months, is testament to the quality of Hartford-built homes. Indeed, the first rental property there was let in days of marketing with a list of people left waiting.
Peace of mind
The majority of our buy-to-let properties have either a full 10 year NHBC warranty or the residual balance, giving the property investor genuine peace of mind. Add to that the enviable reputation of Hartford on the Isle of Man, and our full lettings and property management service if required, it really does add up to as worry-free an investment as you can get. Plus you also know where your property is as a physical asset.
What returns can you expect?
Hartford has exceptional buy-to-let properties available from single homes to portfolio collections of mixed houses and apartments, right up to office blocks or entire apartment buildings including the freehold. At £159,000, our current lowest priced buy-to-let 2 bed apartment in Ramsey will still deliver 5.66%.
The figures above are for rental yield only, and based on outright purchase. They do not take into account the capital appreciation of the properties, which is an added incentive for the longer-term investor. This is not financial advice but an accurate description of the buy-to-let offering/market at the time of going to press.
Want to know more?
Hartford is hugely experienced in working with the property investor, whether on single units or multi-property portfolios/off plan. You can read more about investment opportunities from Hartford here. If you would like to see a list of our current buy-to-let properties, residential and commercial, email [email protected] or call us on 01624 631000.
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