Tuesday 18 April 2023
Investing in UK Property – ERE Case Studies
So you’re ready to invest in property & want help from a specialist property investment company, but you don’t know how to choose.
As we often preach, thorough due diligence is key! What’s their track record? What investments have they sold? How have the investments performed?
The many benefits of investing in UK property include the potential for capital growth over time as well as rental income from tenants. But where should you invest your money? What can you expect to get from such an investment?
In this blog post, we’ll explore the capital gain benefits of investing in UK property by showing you real case studies, properties we have sold at ERE:
Case Study 1 - Victoria Riverside, Leeds, LS10 1FD
Our first case study is Victoria Riverside, a prestigious mill conversion development offering a mixture of spacious one bed and two bed apartments in Leeds. Launch prices started at £142,500 in 2019.
In total ERE sold 24 apartments in this development before it sold out at a gross total of £4,327,000.
See a real ERE investor example below:
• 1-bedroom apartment
• Sold for £142,500 in October 2019
• Property completed August 2020
For this exact unit, Zoopla are estimating that the average valuation is £209k with a high of £249k.
The average rent in LS10 currently standing at £979pcm according to PropertyData.
If this investor were to sell today, what’s the gross amount they will have received from this investment, based on the averages above?
• Capital growth £66,500
• Rental income £31,328
Total income over 2 years & 8 months = £97,828
PropertyData reports show that over the last 5 years property prices in LS10 have had a total increase of 39% in the past 5 years, showing continued strong capital growth in this area.
Case Study 2 – One Hagley Road, Birmingham, B16 8HU
Our next case study is The Foundry, located in Birmingham, this was a popular development among property investors.
In total ERE sold 33 apartments in this development before it sold out at a gross total of £4,516,536.
See a real ERE investor example below:
• 2-bedroom apartment
• Sold for £153,000 In May 2015
• Rented for £950pcm
For this exact unit, Zoopla are estimating that the average valuation is £202k with a high of £222k.
Our investor actually sold this property in July 2019 for £190,000, with a gross profit of £37,000 in capital growth.
If this investor were to hold onto the property & sell today, what’s the gross amount they will have received from this investment, based on the averages above?
• Capital growth £49,000
• Rental income £90,250
Total income over 7 years & 11 months = £139,250
UK Property Prices:
Investing in property can be a great way to create wealth and generate an income. The UK has become increasingly attractive to investors due to its resilient housing market and stable economy.
In recent years, UK residential properties have seen significant rate of price increases due to rising demand and limited supply. The UK house price index from land registry shows the average house price across the whole of the UK is £289,818 (Jan 2023) which is a total increase of 6.3% in comparison to the previous year. This shows that despite the scare mongering news, right now is a great time to invest in UK property.
At ERE Property, we source development deals in high-growth areas with the strong yields and the best long-term capital gain prospects!
If you are looking for your next investment property, please get in touch and one of our UK property experts will be more than happy assist you.
- info@ereproperty.com
- HK | +852 6348 9813
- UK | +44 (0) 113 380 8930
Click here to view our current investment opportunities, we have a variety of great investment opportunities to suit your budget & needs.