Whether you’re flying along, passing by on the motorway, or walking the city streets it’s clear to see that Belfast is booming right now. Cranes are popping up everywhere with new developments constantly around the corner so it’s a pretty exciting time to invest in Northern Ireland’s capital city.
Thankfully the city has something to offer all sorts of property investors at various stages and using various strategies. As always there are plenty of opportunities for the creative investor out there!
Thankfully the city has something to offer all sorts of property investors at various stages and using various strategies. As always there are plenty of opportunities for the creative investor out there!
Two Key Property Investment Options
These opportunities can be broadly split into two key options.
First up is the buy to let strategy. This strategy focuses on an evolving combination of cash flow (monthly rent minus expenses) and capital growth (the year on year rise in property values). There are areas of opportunity within Belfast that mean you can still purchase properties for under £50k that, when properly taken advantage of, can result in great cash flow and capital growth over the coming years. It should be noted that this is primarily a long-term strategy that could be suited to pension-pot style investments.
The second option is to focus on “flips” where you buy a property, renovate and sell on at a higher price. Belfast is constantly redeveloping right now meaning, if you find the right property, the potential is there to make a substantial cash gain without the headaches that come along with operating as a landlord. This may be a great short-term option for the right investor.
First up is the buy to let strategy. This strategy focuses on an evolving combination of cash flow (monthly rent minus expenses) and capital growth (the year on year rise in property values). There are areas of opportunity within Belfast that mean you can still purchase properties for under £50k that, when properly taken advantage of, can result in great cash flow and capital growth over the coming years. It should be noted that this is primarily a long-term strategy that could be suited to pension-pot style investments.
The second option is to focus on “flips” where you buy a property, renovate and sell on at a higher price. Belfast is constantly redeveloping right now meaning, if you find the right property, the potential is there to make a substantial cash gain without the headaches that come along with operating as a landlord. This may be a great short-term option for the right investor.
The Lay of the Land
After deciding on a specific investment strategy the next stage is to analyse areas of Belfast that are ripe for redevelopment, flipping or rental properties.
One major consideration, during this stage, is the existence of two large Universities within the city and the resulting and constant need for good student accommodation. As a result investing in HMOs (Houses of Multiple Occupancy) can be a very rewarding strategy but remember to consider the regulations and responsibilities involved.
Another opportunity, as a result of the post-2007 recession, is the high numbers of owner-occupiers in negative equity that want to move on and are seeking a way out. To counter this and take advantage of the current marketplace you could propose a lease option agreement that works for both parties.
One major consideration, during this stage, is the existence of two large Universities within the city and the resulting and constant need for good student accommodation. As a result investing in HMOs (Houses of Multiple Occupancy) can be a very rewarding strategy but remember to consider the regulations and responsibilities involved.
Another opportunity, as a result of the post-2007 recession, is the high numbers of owner-occupiers in negative equity that want to move on and are seeking a way out. To counter this and take advantage of the current marketplace you could propose a lease option agreement that works for both parties.
Moving Forward
With all of that in mind, and a quick glance around the streets of Belfast, it’s clear to see that opportunities exist but many potential investors are put off by their lack of capital to get started.
Money is clearly an important factor, and raising finance will always represent a crucial element of any property deal, but it’s not always the defining factor in getting started. There are various strategies that exist including the option of joint venturing with other like-minded individuals where various parties bring money, time, experience and the deal to the table.
There are so many strategies out there so come along to the next Belfast Property meet to find out more, network with fellow investors and learn from experts that operate here in Northern Ireland!
See you soon!
Money is clearly an important factor, and raising finance will always represent a crucial element of any property deal, but it’s not always the defining factor in getting started. There are various strategies that exist including the option of joint venturing with other like-minded individuals where various parties bring money, time, experience and the deal to the table.
There are so many strategies out there so come along to the next Belfast Property meet to find out more, network with fellow investors and learn from experts that operate here in Northern Ireland!
See you soon!
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