Despite being one of the safer investment types, property is often overlooked and referred to as an “alternative asset” class. Yet, investors still plough their money into bricks and mortar and see returns from yields and capital growth.
But when it comes to the finer details of investing, which aspect should take precedence: capital growth or yields? Over the years, the expectations behind both have evolved along with the property market. Pre-2015, the UK housing market was an attractive proposition and a no-brainer for investment, thanks to house pricing rising exponentially.
Today’s landscape still holds appeal, but more caution is required, especially in the wake of Brexit and the Covid pandemic. One aspect that investors can look fondly on, however, is rental market demand from tenants.
Knowing where to invest can attract high-calibre tenants where yields are maximised, and capital growth realised. There’s no magic formula; instead, it requires having strong knowledge of areas and spotting their potential.
Of course, once you have acquired your assets, you will need to maximise them. Achieving capital growth and high yields isn’t solely related to the neighbourhood where the property is located. Having the right approach to finding tenants and utilising property managers tactics can help achieve higher yields while improving your asset’s value.
Here at Herddle, we’ve created a white paper examining capital growth and yields, and what you should look out for when investing in bricks and mortar. It explores the current landscape in the UK rental market, along with how to maximise your investments.
In this white paper, you will learn:
- Capital growth versus yields and how they have evolved
- Where you should invest
- How to ensure strong returns on your property assets
Download the white paper, and get the lowdown on how to choose between capital yields and growth for your property investment.