Looking to buy investment property in Luton? It’s a sound choice, yet one that must be executed correctly. This article tells you about buying investment property in Luton, the types of deals available and the likely returns. Remember, buying property in Luton has, on average, yielded in excess of 8% returns per year, and significant capital asset growth.
Property Investors in Luton 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 Luton using mortgages.
Buying investment property in Luton 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 Luton 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 Luton or elsewhere.
How easy is it to make money from buying investment property in Luton?
This model is an absolute pain the backside for potential property entrepreneurs in Luton.
Which properties in Luton should you buy? What areas of the Luton 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 Luton 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 Luton 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 Luton High Street then there are many investment funds, not readily available to the general public.
Map of Luton
Luton is a town and unitary authority with borough status, in Bedfordshire, England. At the 2011 census, the Luton built-up area subdivision had a population of 211,228 and its built-up area, including the adjacent towns of Dunstable and Houghton Regis, had a population of 258,018. It is the most populous town in the county, 18 miles (29 km) from the County Towns of Hertford, 20 miles (32 km) from Bedford and 29 miles (47 km) from London.
The town is situated on the River Lea, about 30 miles (50 km) north-north-west of London. The town’s foundation dates to the sixth century as a Saxon outpost on the River Lea, from which Luton derives its name. Luton is recorded in the Domesday Book as Loitone and Lintone and one of the largest churches in Bedfordshire, St Mary’s Church, was built in the 12th century. There are local museums which explore Luton’s history in Wardown Park and Stockwood Park.
Luton was, for many years, widely known for hatmaking and also had a large Vauxhall Motors factory. Car production at the plant began in 1905 and continued until the plant’s closure in 2002. Production of commercial vehicles continues and the head office of Vauxhall Motors was in the town for many years, but relocated in 2019 to the village of Chalton, Bedfordshire on the northern border of the Borough of Luton. Transport is provided by London Luton Airport, which opened in 1938 and is now one of Britain’s major airports, with three railway stations also in the town. The University of Bedfordshire was created from a merger with the University of Luton; two of its campuses are in Luton.
Luton Town Football Club, nicknamed the Hatters, due to the town’s connection to hatmaking, has had several spells in the top flight of the English league as well as a Football League Cup triumph in 1988. They play at Kenilworth Road, their home since 1905; planning permission for a new larger stadium was approved in 2019. Luton International Carnival, the largest one-day carnival in Europe, is held on the day before the last Monday in May; the Saint Patrick’s festival is held on the weekend nearest to Saint Patrick’s Day as there is a large Irish community in Luton. The town also has a large Pakistani community which, along with the Irish, were attracted to employment at the Vauxhall car plant. Luton Hoo is an English country house, estate and Grade I listed building originally designed by Scottish architect Robert Adam but later transformed to the designs of Robert Smirke.
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 Luton, 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 Luton
Is buying property investment in Luton 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 Luton. One fact remains often overlooked though, during the frantic and heated investment discussions around the dining tables of Luton
Many individuals and families in Luton 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 Luton have plenty of business and investment initiatives already in play, whether it be in Luton, further afield or in a safer offshore investment fund.
Types of investment property in Luton
The main types of property investment in Luton is:
Undeveloped land in Luton
Greenbelt land in Luton (speculative investment)
Brownfield land around Luton (and apply for planning)
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 Luton 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 Luton 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 Luton, 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 Luton 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 Luton, 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 Luton 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 Luton
Long-term rental property in Luton 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 Luton 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 Luton 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 Luton 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 Luton 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 Luton 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 Luton 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 Luton property to Serviced Accommodation
For property investors in Luton, 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 Luton and then converting these homes into serviced apartments to maximize yield.
The types of property used for serviced accommodation in Luton 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 Luton
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 Luton to the same as running a traditional bed and breakfast. It’s no surprise that the other name for Luton serviced accommodation is a holiday let.
You’ll need to furnish your serviced accommodation in Luton
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 Luton 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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