Looking to buy investment property in Berkhamsted? It’s a sound choice, yet one that must be executed correctly. This article tells you about buying investment property in Berkhamsted, the types of deals available and the likely returns. Remember, buying property in Berkhamsted has, on average, yielded in excess of 8% returns per year, and significant capital asset growth.
Property Investors in Berkhamsted have received a lot of Government and economic support. Much of this support has come indirectly in the form of the lowest interest rates in history. This has been bad news for savers, but of course good news for those buying investment property in Berkhamsted using mortgages.
Buying investment property in Berkhamsted with cash outright is also a sure fire hedge against any rise in interest rates. Some investors look to buy properties in need of renovation or a change of purpose. They then renovate those properties and rent them out on a long term or short terms basis.
Once these properties have been renovated and rented then investors in Berkhamsted may refinance the property by taking a mortgage over the property at a higher value, using the income to pay the mortgage and reinvesting the profit from the deal into more property in Berkhamsted or elsewhere.
How easy is it to make money from buying investment property in Berkhamsted?
This model is an absolute pain the backside for potential property entrepreneurs in Berkhamsted.
Which properties in Berkhamsted should you buy? What areas of the Berkhamsted housing market are going to give the best returns? Do you know the planning application process with the council? Or about the change of use regulations?
The question you have to ask your self about buying investment property in Berkhamsted is how hands on you want to be?
If you want a new career as a developer or property project manager then go for it.
If, like thousands of other investors you simply want to take advantage of the UK property market, and earn more than the poxy interest rates available from the so-called people’s banks on the Berkhamsted High Street then there are many investment funds, not readily available to the general public.
If you want a new career as a developer or property project manager then go for it.
If, like thousands of other investors you simply want to take advantage of the UK property market, and earn more than the poxy interest rates available from the so-called people’s banks on the Berkhamsted High Street then there are many investment funds, not readily available to the general public.
Map of Berkhamsted
Berkhamsted ( BUR-kəm-sted) is a historic market town in Hertfordshire, England, in the Bulbourne valley, 26 miles (42 km) north-west of London. The town is a civil parish with a town council within the borough of Dacorum which is based in the neighbouring large new town of Hemel Hempstead. Berkhamsted, along with the adjoining village of Northchurch, is encircled by countryside, much of it in the Chiltern Hills which is an Area of Outstanding Natural Beauty (AONB).
The High Street is on a pre-Roman route known by its Saxon name: Akeman Street. The earliest written reference to Berkhamsted was in 970. The settlement was recorded as a Burbium (ancient borough) in the Domesday Book in 1086. The most notable event in the town’s history occurred in December 1066. After William the Conqueror defeated King Harold’s Anglo-Saxon army at the Battle of Hastings, the Anglo-Saxon leadership surrendered to the Norman encampment at Berkhamsted. The event was recorded in the Anglo-Saxon Chronicle. From 1066 to 1495, Berkhamsted Castle was a favoured residence of royalty and notable historical figures, including Henry II, Edward, the Black Prince, Thomas Becket and Geoffrey Chaucer. In the 13th and 14th centuries, the town was a wool trading town, with a thriving local market. The oldest known extant jettied timber-framed building in Great Britain, built between 1277 and 1297, survives as a shop on the town’s high street.
After the castle was abandoned in 1495, the town went into decline, losing its borough status in the second half of the 17th century. Colonel Daniel Axtell, captain of the Parliamentary Guard at the trial and execution of Charles I in 1649, was among those born in Berkhamsted. Modern Berkhamsted began to expand after the canal and the railway were built in the 19th century. In the 21st century, Berkhamsted has evolved into an affluent commuter town.
The town’s literary connections include the 17th-century hymnist and poet William Cowper, the 18th-century writer Maria Edgeworth and the 20th-century novelist Graham Greene. Arts institutions in the town include The Rex, Berkhamsted (a well regarded independent cinema) and the British Film Institute’s BFI National Archive at King’s Hill, which is one of the largest film and television archives in the world. Schools in the town include Berkhamsted School, a co-educational boarding independent school (founded in 1541 by John Incent, Dean of St Paul’s Cathedral); Ashlyns School a state school, whose history began as the Foundling Hospital established in London by Thomas Coram in 1742; and Ashridge Executive Education, a business school offering degree level courses, which occupies the Grade I listed neo-Gothic Ashridge House.
What are Property investment funds
These funds are hidden in plain sight. A global network of nods and handshakes at the Rotary club or on the Golf Course. Some people refer to these private investment vehicles as hedge funds or REITS. However, they are not. These are the funds that wealthy individuals and families invest in to get richer.
The barrier to entry to these exclusive clubs is around £50,000 although do remember that these private investor funds have collectively trillions of dollars under management.
And no, these funds are not available at the bank in Berkhamsted, nor are they covered by the FCA. Your IFA or Accountant won’t bring you the opportunities because of course they won’t receive their greasy commissions.
Investment funds are not even allowed to advertise so you’ll never hear of them unless a friend recommends them.
If you don’t know about these firms, and opportunities then these investments aren’t for you. You will need at least some experience with previous investments to be eligible and of course they are extremely picky about the investors they accept. They can afford to be. They don’t need your money, but they can put your money to work for you like never before.
Some of these funds don’t invest in property at all. You’ll know them as hedge funds. However, there are a considerable number of Asset backed Investment vehicles delivering significant income and long term growth.
Top three international investment properties realtors in the UK and Berkhamsted
Is buying property investment in Berkhamsted a good idea?
The top three actively managed funds directly significant offshore funds into the UK market seem to think so. Of course there’s much speculation about whether rates will rise and the uncertainty around buying property investment in Berkhamsted. One fact remains often overlooked though, during the frantic and heated investment discussions around the dining tables of Berkhamsted
Many individuals and families in Berkhamsted want a safer, long term investment. They realize that property is a relatively illiquid investment and they simple was a property secured investment that provides a nice balance of income and capital appreciation.
Many people looking at buying investment property in Berkhamsted have plenty of business and investment initiatives already in play, whether it be in Berkhamsted, further afield or in a safer offshore investment fund.
Types of investment property in Berkhamsted
The main types of property investment in Berkhamsted is:
Undeveloped land in Berkhamsted
Greenbelt land in Berkhamsted (speculative investment)
Brownfield land around Berkhamsted (and apply for planning)
The main types of property deals in Berkhamsted are:
Buy to let in Berkhamsted
Buy to hold
Serviced Accommodation in Berkhamsted
Old Peoples Homes
Car Parks
Commercial Property in Berkhamsted
Buy to change purpose
Buy to let in Berkhamsted
A buy-to-let mortgage is a mortgage loan designed specifically for this purpose. Buy-to-let is the process of buying an investment property in Berkhamsted that is specifically let and is one of the most common types of mortgage in the UK and many other countries. Obviously buy-to-let in Berkhamsted does not have to be done with a mortgage and the sector does attract a significant number of cash buyers.
The purchase – to – rental of real estate is usually a residential property in Berkhamsted, but some terms also include a small number of commercial properties, such as office space and retail space. As with a lease, the benefits of buying a rental property in Berkhamsted as a landlord can include the ability to build up assets as house prices rise over time, as well as the benefit of a low interest rate.
The main risk is that a landlord may borrow to buy the property in Berkhamsted, expecting the house to be sold at a higher price later, or that rental income will cover or exceed the cost of the loan.
Once the price has fallen, this lever could push the landlord into negative equity and, if he cannot meet the terms of his mortgage repayment, the bank will try to take possession of the property and sell it to get the money he borrowed. Banks in Berkhamsted can lend to both landlords and tenants, suggesting that the capital is being used for investment rather than rental income, as a professional investor might do.
Buy to hold in Berkhamsted
Long-term rental property in Berkhamsted is widely considered one of the best ways to diversify your property portfolio. So buying and owning property means much more than just investing in a single property, it can bring you a variety of benefits, such as access to a variety of investment opportunities and the benefits of long-term ownership.
While some investors in Berkhamsted may be confused or intimidated when they start, buying and owning property can be one of the best investments you can make if you do your due diligence before you start.
Buying and owning real estate is an investment strategy for investors in Berkhamsted who buy and hold real estate over a long period of time. The owner usually intends to sell the property later, but leaves it to you to help you buy or finance it.
The rental income from the property in Berkhamsted generates short-term income that can be used to pay off a mortgage or to invest money. The strategy of buying and holding property is one of the most common investment options.
The value of the Berkhamsted property will increase over time and the investor will benefit if he is willing to sell it later. The investor benefits from being bought in the expectation that the value of the property will rise over time.
Investors considering a Berkhamsted property purchase and holding strategy should do their best to calculate the potential income from renting out the property. The bottom line is that monthly income should exceed the cost of rent in the first year of ownership and annual rental income over the next five years.
If the investor plans to sell the Berkhamsted property later, possible profits should also be taken into account. Finally, any losses from taking out a mortgage or other type of property financing must be taken into account, as well as any gains from the sale.
Convert Berkhamsted property to Serviced Accommodation
For property investors in Berkhamsted, converting a home into a serviced apartment would mean higher rents than the normal rent increase. As a result, many people are buying investment property in Berkhamsted and then converting these homes into serviced apartments to maximize yield.
The types of property used for serviced accommodation in Berkhamsted are often the same as those you would use to buy to let. Where you have a guaranteed short-term rent, it’s not as rigid as renting out a property.
Disadvantages of investing in Serviced Accommodation in Berkhamsted
Serviced accommodation is more of a business strategy than a property strategy, and the workload is far more intensive. Seasoned veterans liken serviced accommodation investing in Berkhamsted to the same as running a traditional bed and breakfast. It’s no surprise that the other name for Berkhamsted serviced accommodation is a holiday let.
You’ll need to furnish your serviced accommodation in Berkhamsted
You’ll need to clean the rooms and change the sheets every time your guests leave.
Who does all the laundry?
Who does all the cleaning?
Who’s going to do all the work for you?
How are the guests actually going to get in?
Massive Payments to Online Travel Agents
Are you going to have somebody to do a meet and greet?
Buying investment property in Berkhamsted to convert into serviced accommodation or holiday lets is not really considered an investment, because the amount of work involved make it a full time job.
Alexander Bentley leads Remedy Investments™ a private equity fund specializing in operational real estate. Remedy Investments™ has significant expertise in developing Luxury ApartHotels across Europe and the wider APAC region.
Alexander Bentley is the creator & pioneer behind Remedy Wellbeing Hotels & Retreats. Under his leadership as CEO, Remedy Wellbeing Hotels™ received the accolade of Overall Winner: International Wellness Hotel of the Year 2022 by International Rehabs.
Because of his incredible work, the individual luxury hotel retreats are the world’s first $1 million-plus exclusive wellness centers providing an escape for individuals and families requiring absolute discretion such as Celebrities, Sportspeople, Executives, Royalty, Entrepreneurs and those subject to intense media scrutiny.
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