HMO Property Investment Services in the UK: What You Need to Know
If you’re looking for information on HMO property investment services in the UK, you’ve come to the right place. In this blog post, we’ll discuss what HMO investment services are, and how they can help you achieve your financial goals. We’ll also provide a list of resources where you can learn more about HMO investing and find professionals who can help you get started.
What is a HMO investment?
A HMO investment is a type of property investment that allows you to purchase multiple properties under one roof. This type of investment can be beneficial for both investors and tenants, as it provides a way to reduce costs and increase profits. When done correctly, investing in a HMO can provide a steady stream of income and long-term capital growth.
Is HMO a good investment?
HMO property investments can be an excellent way to generate income and grow your wealth over time. However, there are some risks associated with this type of investment, so it’s important to do your research before getting started. If you’re ready to learn more about HMO investing, we recommend checking out the resources below.
What is a good ROI for HMO?
There is no definitive answer when it comes to what a good ROI for HMOs is, as it will vary depending on a number of factors. However, many investors aim for a minimum return of 15% per year. To learn more about how to achieve this, we recommend speaking with a professional HMO investment advisor.
Where can I find HMO investment properties?
There are a number of ways to find HMO investment properties, including online listings, estate agents, and word-of-mouth. We recommend speaking with a professional HMO investment advisor in the area you want to purchase in to learn more about the best way to find properties that fit your needs.
Things to consider when buying a HMO
HMOs, like any other financial investment, have advantages and disadvantages. It’s important to evaluate these factors and decide whether it’s the right option for you.
Pros
- Strong rental yield when compared with buy-to-let
- Lower risk of rental voids
- As the rent is shared among several tenants, the impact of overdue payments is reduced.
- If the location is right, tenant demand for low-cost housing is high.
Cons
- Managing the property can be more difficult
- Start-up costs can be higher if conversion is needed
- Running costs can be higher
- Arranging HMO finance can be tougher
What are regulations of HMOs?
HMOs must adhere to stricter rules and standards than Buy-to-Lets in general, especially when it comes to fire safety and planning permission. As a result, you’ll also find that the fines for non-compliance are greater. Speak to a good estate agent who specialises in HMO like Mistoria Group who are HMO experts and have helped many landlords successfully let these properties across the UK.