Looking to buy your first investment property or add to your existing rental property portfolio? Here’s 10 reasons why you should be considering houses rather than flats or apartments.
1. Houses are freehold, flats are leasehold.
2. Cash flow is always better with houses, as flats/apartments have service charges and ground rents that bite into profits.
3. You can extend a house, do a loft conversion, convert a garage into an extra room etc. All these ADD VALUE. You cannot usually add value with a flat!
4. Houses have gardens/useable outside space and storage. Flats are restricted on both fronts.
5. In most areas there is an over-supply of flats, and under-supply of houses and bungalows
6. With more and more people working from home (a growing and long lasting trend), space is going to be an important consideration and houses can offer more space for a home office.
7. Flats are supported by the amateur/overseas investor market and first time buyers – meaning that they are very volatile in terms of both rental levels and selling prices. Houses are generally supported by more sophisticated professional investors and family buyers, meaning that they are far more stable in terms of rents and values
8. Houses can be let in single occupancy or multi-let formats, giving you more flexibility and less chance of voids.
9. Houses open up your market to families & sharers and therefore have wider appeal. Family tenants also generally want to put down roots and stay longer – especially if they have children in local schools. Families do not tend to rent flats!
10. Mortgage products are more favourable for houses than flats on the LTV front, meaning lenders see houses as lower risk. That should tell you something!
We are experts at helping property investors to get the best possible return on their investment. If you’re based in Preston, surrounding areas or further afield contact us to book your buy-to-let consultation today.