In my 15 years with Homefinders selling properties and advising investors I have seldomly come across an investment that can guarantee both. However, one aspect of the investment can be guaranteed and that’s a rental income. Most investors now look for a yield of 5% + per annum. Properties can be found around these levels with a bit of searching. Rental prices stay stable most of the year giving you more stability on your investment. My advice to a buy to let investor would always be, check local rental prices, work out the yield, and then commit. If you are also looking for a large capital increase this then becomes a speculative purchase with no guarantees.
Properties which are likely to increase in capital price are usually in areas where there are more owner occupiers then rental properties. Meaning when bidding for a property you are bidding against buyers looking for a home meaning they can stretch the budget to accommodate there needs. When the price is increased its inevitable the yearly yield takes a hit and becomes less desirable to an investor. This is the crunch point were buy to let investors struggle.
I have found, in my experience, the investors disciplined by yearly yield often end up obtaining good rental properties as investments as there is no internal conflict to purchase or not to purchase.
At Homefinders we offer 3 year rent guarantee schemes giving investors the opportunity to buy turn key investments from day one. Or if they have current rental properties they can guarantee the rents with Homefinders for a period of 3 years giving the investor that much needed piece of mind.
We also have a list of properties which yield good rental returns for any buy to let investor who is interested in increasing their portfolio. To give you an example; a 1 bedroom flat in leyton long lease https://www.homefinders.net/properties-for-sale/property/7546852-albany-road-london offers in excess of £199,995 the rental for this property is £11,700 per annum giving a return of 5.85% that’s better then any bank on the high street!