Landlords are being encouraged to consider adding lucrative short lets and assisted living developments to their property portfolios this year.
Property consultants LH1 reports that it continues to see the highest level of transactions in these fast-growing investment markets, which offer record returns and appeal to those who want security and peace of mind.
Assisted living homes are an incredibly smart investment choice compared to other real-estate ventures, according to CEO Rayna Hunter (main picture, inset), as these units consistently out-perform the market, providing strong returns and high yields due to their long-term tenancies and rental payments via the local authority.
“Assisted living developments provide essential high-quality secure housing for those with mental health conditions and disabilities, however, there is a need for private investors to acquire these units and provide the funding to ensure housing associations can operate successfully,” she says.
Private investors will play a big role in delivering the multi-unit developments needed to meet demand, says Hunter. “There is an opportunity for investors to benefit from these excellent returns and this is what will be enticing for some but there is also the chance to be behind something that really makes a difference.”
Benefits include a starting net yield of 10%, secure tenancies with no void periods and no maintenance costs.
Another alternative property investment that has seen an exponential growth is the short-term rental market, according to Hunter, providing landlords with greater freedom, flexibility, and higher profits compared with traditional long-term buy-to-lets.
“High demand for rental properties and a drop in the sales market has resulted in a surge of interest for short-term lets, in turn providing investors with exceptional returns, with average yields ranging between 12-20%,” she adds.