Some of the most profitable buy to let investment opportunities in the UK include investments in student accommodation and investments in care home accommodation. You can buy single or multiple units in a student residential block and prices start from just £60,000 to invest in buy-to-let areas UK like Liverpool. Yearly returns on student accommodation typically exceed 8% net and you don’t have to worry about any maintenance costs. 8% net returns per annum are much higher than you could currently expect to receive if you put your capital in a savings account.
Next, the UK has a large aging population and many of those entering residential care in the coming years are asset rich. This means that they have money to spend on their care. In addition, the UK government provides funding for residential placements for all citizens that require elderly care who don’t have any savings or pensions. Furthermore, there are long waiting lists for places in many residential care homes. This all means anyone who invests in the UK care home real estate market will not have to worry about high vacancy rates or defaulting rent payments.
It is possible to buy a single managed unit in a residential care home and enjoy hands-free returns. You don’t have to worry about finding tenants yourself or dealing with maintenance issues. This is all managed for you by the company you buy your unit through. Returns can exceed 12% per annum and many unit sellers operate generous 5-year buyback schemes. With these buyback schemes, you can often sell your unit for 10% more than the initial purchase price after 5 years. However, it’s important to check the terms and conditions of all unit sales carefully.
One of the great things about investments in buy-to-let student accommodation and elderly residential care units is that the investments are available to the global marketplace. This means if you are based overseas and looking to invest in UK real estate, these types of investments could be the ideal starting point. You can always scale up your investment and increase your potential returns by purchasing multiple units. Keep in mind that it’s always good to diversify your investments, so you might want to invest in buy-to-let areas UK in a diversified way. For example, you might want some units in different cities, such as London, Leeds, Glasgow, Bath, Manchester and Newcastle. That way, you are shielded against any short-term local property market crashes.