Property investment UK – what’s the best strategy?

So what is the best property investment UK strategy?

I believe that ‘Buy and Hold’ is the most effective, profitable and secure way of investing in property. This Buy to Let investment strategy does exactly what it says on the tin, as you buy the property to rent it out and hold it long term.  This is the strategy I utilise for our own family investment and those of my investors under Alton Property Partners.

Buying and holding property has a proven track record to generate wealth and as the traditional route to property investment banks like it!  They even allow you to leverage your investment money by utilising ‘other people’s money’ to purchase up to 75% of the property.  And you receive the income on the full 100%.

In addition as the legal owner you receive both the Cash flow generated and also any capital growth over the longer term.

In simple terms I believe this strategy provides you the greatest peace of mind as an investor. You can build your asset base at your own pace knowing you have control over your outcome, as you can make your own financial decisions.  With the steady month in, month out cash flow having the ability to make you financially secure, both today and in retirement.

Historically property values have doubled every 7yrs – 10 years since first tracked in 1952 by Nationwide, however we are currently in unchartered waters on capital growth.   My projection is that we won’t really see any real capital growth for several more years so the 7 – 10 years is more likely to be 10 yr – 20 years this time around.  That being said you make your money at the time of purchase and then because you are ‘holding’ the property for the long term you will also have the ability to benefit from any capital growth over the long game.   This capital growth can then be remortgaged out of the property for further investments, and it is tax free!

We have followed exactly this strategy with our initial three investment properties being purchased in Bristol around 1996, for £41,500, £30,000 and £31,500 respectively.  They are now worth £150,000 and £100,000 each, and over the past 16 years we have remortgaged a total of £114,099 out of these properties, which we have then re-invested in more property.  As we are naturally cautious investors we are also only geared at 60% across all three houses.

It is this ability to have control of your income and assets which the ‘buy and hold’ strategy provides you which is of paramount importance to your financial security.    You have the flexibility to build your own asset base at the pace which suits you and you can then leave it in a Will, so your family members benefit long term.

So what are the disadvantages of this strategy? First, you need to have access to some money for deposits, if this can’t be your own then spend time looking for Joint Venture finance, this could initially come through friends and family.

Second, with all investing it is essential that you do thorough due diligence; cutting corners with this strategy will only be to your detriment and could mean the property you thought was going to be an asset, soon becomes a liability.

If you would like to understand more about how the ‘buy and hold’ strategy for property investment UK can work for you and provide you with peace of mind you desire I would be delighted to have a conversation with you and help build your own platform for financial security.

Gill Alton

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Gill Alton is the founder of Alton Property Partners, which provides a comprehensive and personal Property Portfolio Building Service for investors in the UK.

Alton Property Partners manage the entire investment process, from sourcing property at a discounted value, co-ordinating the Mortgage, arranging the refurbishment, right through to ensuring it is ready for the rental market.

The service is specifically aimed to support those who recognise the value of a UK investment portfolio, but lack the time, or knowledge to be able to invest for themselves because they are full time employees or Business Owners. With full consultation and comprehensive financial analysis, clients can be assured that their portfolio of strong yielding properties will be built to exacting standards and they will be kept up to date every step of the way.

Having been involved in property for 16 years Gill has built a personal portfolio for her family, and in addition to Alton Property Partners, runs a Property Mentoring Business, Venus Property Mentoring which focuses on supporting new investors onto the investing ladder. Having originally left the Corporate world to be a Qualified Mortgage Broker, Gill’s husband now focuses on their family Mortgage Brokerage in Maidenhead – Alton Mortgages.

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