Following the 2008 financial crisis, investors have found it both more difficult to find high-income yield investments and loans to finance investments.Property investing using alternative lenders could be the answer.
The Investment Association has said demand for investments generating income is strong and said:
“It is becoming increasingly clear that clients are looking outside of traditional fixed income securities towards other asset classes that can provide them with a reliable source of income.”
Both buy to let and commercial property investing can create income streams from rents that provide higher income than other forms of investments. Whilst banks still provide commercial mortgages for purchasing property, they are more reluctant to do so for development and new build properties. Large banks are also more cautious in their bridging lending.
There are several alternative lenders that provide funds for property investors. Whether an investor needs short-term bridging finance or longer-term loans, a broker can find a suitable lending deal for property investors.
Not every property deal is profitable, the sector and location of the property are important. Buy to let landlords have faced increased costs over recent years but diversifying into areas such as student accommodation, houses of multiple occupancy and semi-commercial property they can improve profits.
Not all retail sector properties are doing well, but there is a high demand from online retailers for warehouse property.
Property purchasing decisions informed by in-depth research can result in high rental yields that provide the income level that investors want.