HMO property investment yields increase

The third quarter of 2012 saw quite a substantial leap in rental yields achieved from HMO property investment. Yields jumped from 9.2% in the second quarter to 11.1% in the third quarter. This has possibly been in response to the refinancing of cheaper HMO properties in order to raise capital potentially for further investments.

Although the increase in rental yields is encouraging news for investors, the average property value of HMO property investment deals decreased by 41% compared with the same quarter last year.

HMO property investments pave the way for a secured future

As HMO property investments have previously been aimed at the student market, more professionals are seeking this method of rental agreement due to the flexibility this housing method gives them. Similar to students, a HMO allows them to share a property with friends or colleagues without the overheads, huge deposits or a hefty mortgage. In most HMO properties, bills are inclusive (with the exception of council tax for non-students) which enables the tenants to budget their outgoings and live comfortably with their chosen housemates.

By opening up your HMO property investment to professionals as well as students, you’re expanding your target market and giving your property the maximum chance of being rented out – thus securing that much needed rental income for longer.

It has become the norm for tenants to expect a contemporary, clean and safe environment to live so internal decor will ensure that your tenants fall head over heels for your property from the moment they step through the door. Furnished packages are also worth considering but as an investor, ensure furniture is hardwearing and durable.

Advice for investors seeking UK property investments

The Mistoria Group understand that HMO property investments can appear daunting at times however, their experienced team aim to make the process as simple as possible. Their friendly approach ensures that you’re armed with the information needed for you to make informed decisions about any property investment you wish to explore.

Contact The Mistoria Group online on UK Property Investors or speak to their team on 0800 500 3015. Alternatively, you can communicate with The Mistoria Group by email and a member of their team will contact you as soon as possible.