Why Investors are seeking high rental yields

​

While property investors seek the best return on investments for the properties they purchase, many have started leaning towards new build high rental yield properties to secure their investments long term.

Over the years the property sector has seen a rise in popularity where it concerns new build properties. Whilst many of the benefits of buying a new build are what catch the investors eyes, the main reason they are buying into them is due to high rental yields.

​

To combat the costs of new build prices, landlords look for the best offers on purchasing price, area and other factors such as community and landscape alongside retail stores etc.

​

As off plan properties can be purchased before completion, this means buyers can purchase the property before it has been completed. This in turn adds value to the property till it has been complete. The buyer may likely get a discount on their property too as many developers want to sell the property as quick as possible.

​

Once complete the buyer then has full control over the property and can freely decorate it to their liking knowing that there have not been any tenants in it that could have potentially messed up the place.

​

The new properties that are built can be marketed towards any generation for example students, as they can decorate the property to fit a modern standard which attracts student's eyes. As student travel and tend to stay in other cities on student loans, there is a guarantee that investors can always get their rent on time. This can be the case for any working individual too.

​

Property investors are keen on buying properties with high rental yields so that the property has time to grow in capital. Many times, landlords will sell off properties after a certain number of years. After paying ground rent and stamp duties the landlord should have around £600-800 in profit after collecting rent. This can vary depending on rental yields and area. However, this profit can then be used to either pay off the mortgage on the off plan if one was taken out or simply be 100% profit.