Considering investing your hard-earned money into property for the first time? Would you rather take a hands-on approach or leave the management to the experts?
Armchair property investment provides the perfect opportunity for investors to buy and own an investment property outright in their own name.
Armchair investing can also be financed using a mortgage and come fully furnished and tenanted to ensure you are receiving a return on your investment from day 1 of completion.
If you’d prefer to avoid the time-consuming process of vetting tenants, maintaining your property and ensuring the rent is paid on time, then armchair investment may be the route for you.
Regardless of whether you’re an experienced investor with an impressive portfolio of properties or you’re searching for a new venture to explore, armchair investment can provide significant returns through the rental market.
What is armchair property investment?
Property armchair investing is the process of buying and owning a property, but using a management company to carry out its day-to-day running. Hence, the ‘armchair’ part of this type of property investment as the investor won’t have any direct experience with the rental operations.
Armchair investment provides the perfect opportunity for investors to buy and own an investment property outright in their own name. An armchair investment can also be financed using a mortgage and come fully furnished and with a tenant to ensure you are receiving a return on your investment from day one of completion.
What does an armchair property investor look like?
An armchair investor, also known as a hands-off investor, typically has the funds available to invest, but not the time to manage the investment.
As a result, they require a letting agent or management company that will ensure the property is rented successfully and is able to provide a stable return for the armchair property investor.
Armchair property investment is an attractive and feasible option for certified high net worth individuals, classified as persons that either have a high annual income (more than £100,000) or their own assets amounting to at least £250,000.
Ultimately, an armchair property investor will be someone that can demonstrate exceptional financial literacy.
What are the advantages of armchair investment?
It’s no secret that the costs associated with buying, renovating and letting a property can be significant, frequent and ongoing. However, armchair investment provides an opportunity to simplify the way in which investors finance their ventures by offering a lump sum payment option to cover all of these costs.
Often, management companies like Mistoria Group will provide armchair investors with a fuss-free package deal. This means armchair investors only need to shell out for one lump sum instead of repeatedly dipping into their pockets for ongoing renovations, letting fees and property cleaning bills.
Many armchair investors seek out this type of property investment because they simply don’t have the time to manage the property themselves. From tackling maintenance issues to attracting tenants, managing a property can be a full-time job.
For many property investors juggling several professional ventures as well as their personal lives, they don’t have the time to commit to managing their properties. This is where Mistoria Group can help with our personalised property investor packages that aim to provide you with a return on your investment from day one.
Guided by expert knowledge
With a personalised armchair property investor package, you needn’t be an expert when it comes to the rental market. As long as the investor has done their research and knows where they want to invest their money and how much they’re happy to spend, a qualified property management group can handle the rest.
At Mistoria Group, our experienced team is made up of expert maintenance managers, accountants, and estate agents, so you can be confident that your property investment is in safe hands. Not to mention, with such a dedicated and extensive team on hand, the investor needn’t live nearby and can opt for almost any investment opportunity on the North West property market.
While waiting for your hard-earned money to come back to you can be part and parcel of the investment process, quick returns are always welcomed. Luckily, with an armchair property investment, you could start to generate a return from day one!
By using a professional property management company like Mistoria Group to source, furnish, and find tenants for your property, you needn’t wait as long to start receiving returns. To find out more about the investment process and expected ROIs, check out our armchair investment example below.
Armchair investment example
Min Capital Needed: £130,000
Nature of Investment: Buy-to-hold and refinance
Holding Period: Ongoing
ROI: 8 to 13% cash / gearing, rental income plus capital appreciation
As seen on the below images, the property has been sourced, renovated, and furnished to very high standards and will be fully managed by Mistoria as part of the hassle-free armchair property investor package.
All our services are designed to meet your individual needs and requirements, whilst also consistently adding-value through our efficient management processes to produce strong returns on your investment. In addition, you actually own the investment in tangible form.
While receiving extensive returns through the rental market, you can also look forward to the extensive capital appreciation your investment will bring.
The ultimate returns achievable will be determined by the type and level of cash/gearing used, although returns between 9% (cash) and 20 % (gearing) are typical with this type of property investment.
Thanks to our tailored armchair property investment packages, we consistently provide our clients with high-yield investment opportunities across the North West. Less volatile than many other investment options, armchair investment at Mistoria Group is a reliable way to enjoy stable ROI’s of up to 13%.
Alternatively, you can always get in touch with us by filling out our online investment enquiry form.