The Landlord Magazine | Page 28

A PROMISING YEAR CONTINUED... Currently, student accommodation investments benefit from strong market conditions that continue to improve with a rising demand and an established asset class. Purpose-built student accommodations enjoy the security of the UK property market owing to the strong and transparent property ownership laws. Although such properties were previously reserved by institutional funds, they are now easily available to general public investors, while their investment prospects appear liquid and durable with Large Pension Funds still active in this market. By being fully managed and yielding assured investor returns, student accommodation developments offer promising capital growth potential as property prices continue to rise in the UK and predicted to follow an increasing pattern in near future. Experts also notice investment potential in hotel properties in the UK, offering investors an excellent affordable alternative to residential buy-tolet and commercial property investments. Investing in individual hotel rooms presents investors with an opportunity to buy into one of the most lucrative sectors of the property market at a fraction of the cost. Considering the current expansion of the UK’s hospitality industry and tourism numbers on the up, investing in hotel properties can possibly produce fantastic yields. Once they invest, investors can secure a rental guarantee from the hotel owners to ascertain a guaranteed rental income once the property starts functioning. As hotels are fully maintained and managed by expert operators, often under famous brand names, investment of this sort can really save investors the hassle of administration, advertising and repairs. Although new properties can take 1 to 2 years to pick pace and build a customer base, once a hotel is established, investors can normally earn 50% of the net room income or higher, depending on their contractual arrangements. Hotel properties located in prime locations throughout the UK and offering close proximity to popular visitor attractions yield an average Return on Investment (ROI) ranging from 8% to 14%, which is considerably higher as compared to traditional buy-to-let residential and commercial developments. phone: (00) 002.003.004 fax: (00) 002.003.004 email: [email protected] www.domainname.com address: 5the Avenue 10001 NYC New York I p r