Buy-to-let investment has been a financial mainstay for experienced and novice investors alike. While property investments are a highly attractive method of achieving capital growth and building your wealth through passive income, recent events have made real estate a riskier asset class than many investors are comfortable with. Small-scale landlords especially felt the sting of last year’s mortgage crisis, with many opting to sell their housing and exit the market to avoid hefty remortgaging fees.
While the buy-to-let market has experienced some turbulence in the past few years, there are still opportunities within it that can satisfy investors’ financial goals while minimising the risk to their property portfolios. For property investors seeking a buy-to-let investment safe from the dangers of rising mortgage rates, house price instability and future legislation, Concept Capital Group offers a fully managed alternative investment solution. Our buy-to-let modular homes offer clients a social housing investment opportunity that does away with many of the trappings associated with a traditional buy-to-let property, ensuring that investors can better manage risk and preserve their capital in a downturned housing market.
For a brief breakdown of the benefits of buy-to-let investment and how Concept Capital Group improves upon those benefits, this blog is a perfect precursor to your next foray into non-financial assets. To find out what an alternative buy-to-let asset can do for your property portfolio, our team of experts is here to guide you towards simpler passive income.
3 Big Buy-to-Let Benefits (and How We Do Things Differently)
Fixed Passive Rental Income
One of the key reasons buy-to-let investments have remained a favourite over the years is due to their relative stability. Whereas investments in exchange-traded funds and stocks can bring substantial risk alongside substantial gains, buy-to-let property is a real asset that offers investors a tangible, non-financial solution for securing passive income at a consistent and reliable rate.
In traditional buy-to-let investment, however, there is arguably no such thing as truly passive income. Rather, most buy-to-let landlords and investors are forced to keep pace with constant maintenance, repairs, legislative changes and other obligations that inevitably require a commitment of time and money. In many ways, managing multiple buy-to-let properties can become a full-time job as landlords bounce between the myriad responsibilities of property management.
This can be especially true in the UK housing market, where the need to retrofit outdated properties presents a major financial hurdle for property investors. According to JLL, 48% of all existing UK properties had an EPC rating of D or below, with the average cost of bringing those homes up to a grade C or above estimated to be around £35,000 per property.
At Concept Capital Group, investors can enjoy fully managed buy-to-let investment that ensures true passive income. Because our team of experts manage everything from manufacturing and tenanting to maintenance and rent collection, our clients never have to worry about additional hidden costs or time commitments. With each home built to modern energy efficiency standards and designed to accommodate entire families of renters, investors never have to worry about retrofitting and meeting evolving Net Zero targets. A single purchase is all it takes to secure fixed passive rental income, access to our comprehensive property management services and full ownership of their home in perpetuity.
Capital Growth in Buy-to-Let Investments
In traditional buy-to-let property, capital growth can occur as a result of the value of land increasing over time. This creates a scope for landlords and property investors to leverage the inflated value of their land to either raise rent or exit their property for a substantial net gain.
In recent years, house prices have been impacted by market fluctuations that have seen them hit record highs. At the same time, average rents experienced a 7.2% growth throughout 2023 according to Zoopla. While this may superficially suggest that traditional buy-to-lets are currently allowing landlords to earn money hand over fist, the reality is that much of these price hikes are the result of inflated interest rates and a universal cost of living crisis that have prompted landlords to pass their costs on to tenants. These dual crises are also responsible for landlords exiting the buy-to-let market in force since last year, with many finding the increased costs of maintaining a home too much to bear.
Concept Capital Group does not offer the same capital growth found in traditional buy-to-let investment. This is because our investors pay for ownership of the homes they purchase, not the land those homes are placed on. By omitting the costs and regulatory framework associated with land ownership, however, we allow our clients to enter the buy-to-let market at a much lower cost than usual. As an alternative property investment opportunity, this simplification allows investors to more easily sell their properties on secondary markets at a higher potential asking price.
Buy-to-Let Property Insurance
When investing in buy-to-let property, the risk factor posed by property damage, the loss of rental income and any associated legal costs can severely impair one’s ability to reliably generate returns on their investment. Every landlord fears the possibility of lengthy void periods, destructive tenants and sudden infrastructural problems putting a dent in their profits.
Dedicated property insurance tailored for buy-to-let property owners can be an easy and effective way to mitigate losses incurred by unexpected damages. For many landlords, however, insuring one or more properties can be a significant expense within itself. Although most landlords would likely agree that buy-to-let landlord insurance is worth it, sacrificing part of their monthly returns can be a hard pill to swallow. And, in the event of a claim, the process of filing for compensation and raised premiums can still make even experienced landlords feel uneasy.
Concept Capital Group’s buy-to-let investment offer is unique in that it comes coupled with fully inclusive insurance against the value of your home. For no additional fee, we cover your property against damage through our partnered insurance provider. In the unlikely event of a void period, we also ensure all our clients continue to receive monthly passive income, allowing them to continue moving towards their financial goals regardless of unexpected obstacles.
What Else Makes Concept Capital Group’s Buy-to-Let Investment Special?
Besides the previously mentioned benefits factored into your buy-to-let investment with Concept Capital Group, we also offer:
- An annual ROI of 10%
- Reinvestment strategies every two years
- And more!
To explore our housing investment opportunities in more detail, book a call with our team today.
