If you’re a prospective landlord looking to break into the property investment market. Or even a current investor looking to expand their portfolio. Then one of the first decisions to be made is whether to invest in the Private Rented Sector, or go for a build to rent property. Although both have their strengths. Here will we look at what are the advantages of the private rented sector.
Options to Suit all Tastes & Budgets
The main advantage of the private rented sector, is that it is a well established wide ranging market. Especially in the City Centre of Liverpool. The sector as it currently sits is in a position to offer tenants apartments in both new and old buildings. In many of the most desirable locations. In sizes both big and small, and at a price to suit all budgets.
This means for those will smaller budgets, making their first entry into the market, there are an abundance of one bedroom flats available. And at the other end of the scale. Modern penthouse apartments and Georgian townhouses are there for those wishing to explore the top end of the market. Throw in student investment properties into the mix, and you have a city centre market which caters for all budgets and investment portfolios.
No Shortage of Tenants
The current size of the market for homes means that whatever property you have, there will be a tenant that is looking for something similar. This is one of the main advantages of investment in the Liverpool city centre property market at the current time.
As our September 2021 market report shows, there is currently a shortage of high quality properties available to rent in the city centre. As Covid restrictions are relaxed, people are again drawn to the lifestyle living in a city offers. However, the amount of “housing stock” is not there to meet the demand. If you have a property available, or are looking to purchase one, there are tenants looking for rental opportunities.
What You Will Need to Consider
One of the downsides to a well developed market, is that older properties reside within in. The major problem is that many of these apartments are now showing signs of age. Having not been well looked after by current or previous owners.
A vast majority are over 10 years old. And without regular maintenance/improvement many have started to fall below the standard that many tenants have come to expect. This is especially relevant during a time when many have been spending more time in their apartments due to Covid/lockdowns. Whilst many landlords are keen to ensure that their buy to let investment keeps pace with the market. The continually increasing “tax take” by the government has made this difficult to do.
Many of the older blocks of apartments in the city are also being impacted by EWS1/cladding issues that we covered in our previous report. This has put further pressure on landlords at a time when they ideally need to be investing in their apartments. Not worrying about additional potential costs in relation to the building in general.
This is where it is important to have an agent who has strong ties to the market, and years of industry experience. City Residential are perfectly placed to assist anyone wishing to enter the Private Rented Sector for the first time. Or are planning on adding new assets. If you would like to discuss your plans in more detail, you can call us on 01512316100 or email us at [email protected].