FAQs

If you’re interested in purchasing an investment property, you will probably have a lot of questions about the process. Below we have outlined a selection of FAQs we deal with from current and prospective clients, including informed and expert market insights into every aspect of property investment.

Who is Alesco Property?

Based in London and founded in 2016 by property investment experts with more than 20 years’ experience in the field, Alesco Property boasts a strong reputation and enviable position at centre stage of the property investment market.

Using our decades of experience, privileged market insights and wealth of property investment knowledge, we help a diverse global client base to invest with confidence and build strong property investment portfolios that provide true value in line with individual investment ambitions.

With opportunities covering buy to let, fully managed commercial investments, and short-term letting services we are confident that we can build the ideal portfolio for every investor.

Why use Alesco for your property investments?

We value long-term relationships and the highest possible returns, using our strong relationships with leading developers to offer every client the very best property prices at below market value as well as access to the most exclusive opportunities available on the market. Thanks to a comprehensive due diligence and risk management process, we offer all our clients peace of mind with their property investments and long-term financial security.

Flexibility is a key part of our process and should be a key feature for any property investor seeking advice. Our experience and know-how allow our market analysts to skilfully work with investors from all walks of life, from new and experienced private investors to funds and institutions.

Whether your aim is immediate returns or consistently high yields, we can introduce you to the most exclusive opportunities and help you to build a tailored portfolio. With our current interests focused on the UK’s Northern Powerhouse which is predicted to deliver the highest returns over the next five years, our team at Alesco Property will always offer clients the most prime opportunities on today’s market.

What is buy to let?

Buy to let is a very popular type of property investment where a property is purchased for the purpose of being let out to tenants. With the rise and rise of Generation Rent and the Private Rented Sector encompassing the younger generations as well as older tenants who have been priced out of the market or seeking to downsize, demand for high-quality buy to let continues to grow.

As rents are predicted to rise with inflation and the supply-demand imbalance continues, the market only grows more attractive. Experts predict there will be more than 7.2 million rental households by 2025, and rents are expected to grow by 20% over the next five years.

Why invest in Buy to Let?

Provided the property location is chosen wisely, buy to let represents a lucrative asset and bricks and mortar investment that provides regular returns and diversifies a healthy investment portfolio. As a highly flexible opportunity, buy-to-let investment can support those investors looking for yield, growth or a good balance of the two.

It is essential to choose your location wisely and invest in property in an area that will remain strong during periods of market downturn thanks to a strong supply-demand balance with a steady stream of desirable tenants from your target market.

Overall, UK buy-to-let property investment has been the strongest investment market for decades and has remained resilient despite the introduction of new, more stringent regulations. It continues to outperform other mainstream asset classes, and its appeal is boosted by the fact that interest rates remain historically low.

With buy to let, investors can also benefit from both short- and long-term income streams in the form of rental returns and capital appreciation, as the value of the property grows over time. As house prices in the UK’s property investment hotspots continue to rise year-on-year thanks to low supply and high demand, investors can expect strong capital appreciation to boost their rental income if and when the time comes to sell their property.

What are the criteria for a buy to let mortgage?

A buy-to-let mortgage is very similar to a standard residential mortgage and current rates are exceptionally competitive thanks to market conditions. Most lenders will require that you own your own home, have a strong credit record and earn more than £25,000 a year. Many will also approve applicants who will be younger than 70 years old when the mortgage term ends.

While there are both interest-only and repayment mortgages available for buy-to-let investors, most landlords opt for the interest-only option. Typically, lenders require you to put down a deposit of at least 25%, although this can vary between 20-40%. For more information on payment options, how much you can borrow and where you can get a buy-to-let mortgage, click here to read our comprehensive guide.

What taxes are associated with buy to let?

Buy to let is broadly associated with three main types of tax – Capital Gains Tax (CGT), Income Tax and Stamp Duty Land Tax. Our expert team at Alesco will guide you through the finer details to ensure you gain the most benefit from your investment. We will also explain any opportunities to reduce your tax bill, such as offsetting the cost of Stamp Duty. For more information on buy to let taxes, click here to read our guide in full.

What is Build to Rent?

Build to Rent (BtR) properties are purpose-built for renting and typically feature a single management company, all bills rolled into one monthly payment, and longer tenancies. Designed to offer a strong sense of community and security for tenants, these properties currently account for nearly 20% of all UK households and are particularly popular with young professionals and families thanks to their prime urban locations, good transport links and high-quality, on-site communal facilities.

As BtR provides a potential solution to the chronic housing shortage, the sector has benefited from significant government support including a £1bn development fund. This all combines to offer investors the prospect of higher rents and steady income streams as part of investment into a thriving and fast-growing sector. BtR represents an attractive investment sector for both large institutional and private investors, the latter of whom usually take advantage of schemes during the earlier developmental stages.

What is off-plan investment and what are the benefits?

Off-plan property investment means investing in a property either before or during the construction process. Broadly speaking, the earlier you invest, the cheaper it will be. Off-plan properties offer the opportunity to invest at far below-market rates, often by as much as 20%. There is also the possibility of high capital growth that comes with investing in luxury property in a prime location before it hits competitive market prices. With many developments entirely sold out before completion and located in areas of low supply and high demand, it is often the only way for investors to access the most desirable properties in key areas. Many off-plan investments are also extremely flexible when it comes to the deposit where payments can often be split incrementally over weeks or months.

With this type of investment, it’s essential to consider any factors that may impact on the property value in the future, such as general investment into local infrastructure which will push up property prices. You also need to consider the build itself and which amenities, fittings and value-added features will be included as this is likely to generate higher, more consistent returns on completion. Investing in the right area and choosing a reputable, reliable developer with a strong track record are the best ways to guarantee the success of your investment – for expert support with off-plan investment, contact our specialist team today.

What are the benefits of investing in care homes?

Care home investment is a flexible, low-maintenance property investment choice which comes fully managed and asset-backed with low entry prices, guaranteed buy-back options and immediate returns. As a powerful passive income generator, it provides regular income payments with assured capital growth, no ongoing fees, stamp duty, mortgage or running costs.

Alesco’s exclusive range of care home investment options offers investors assured returns of 10% net for at least ten years, with the option to extend. All rooms are exempt from council tax and stamp duty.

With our ageing population and growing life expectancies where one in four people in the UK will be at retirement age by 2050 and demand for new care home locations will exceed 40,000 by 2020, demand is growing every day and investment opportunities are increasing all the time. A clear need for the development of new purpose-built care homes means a range of prime opportunities for investors in line with high expectations from seniors and their dependents fuelling demand for the highest quality infrastructure.

As a low-risk choice with multiple exit strategies, care home investment exists within a regulated industry that offers full transparency where investors benefit from full ownership of every purchase with the title deeds registered on the UK land registry.

What are the best UK property hotspots?

The Northern Powerhouse is a collection of key cities and towns offering some of the best rental yields and house price growth in the whole of the UK. Thanks to huge investments being made as part of the commitment to increase the impact and contribution of the North of England to the UK economy and revive the area’s strong industrial heritage, these cities are boasting huge levels of job creation and economic prosperity, which in turn has seen unprecedented demand for high-quality housing.

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What is the UK's Northern Powerhouse? Why is it the subject of so much attention from real estate investors? Find out in our free guide.

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