If you’re looking to invest in HMO, you’ve come to the right place. In this guide, we’ll walk you through everything you need to know about HMO investment in the UK – from what it is, to how to get started. We’ll also discuss the best strategy for your portfolio and help you decide if HMO investment is right for you. So whether you’re a seasoned investor or just getting started, this guide will provide all the information you need to make an informed decision about HMO investment in the UK.
What is HMO Investment?
HMO investment refers to the purchase of a property that will be used as a House in Multiple Occupation (HMO). A HMO is a type of property that can be rented out to multiple tenants, typically students or young professionals. In order to qualify as an HMO, the property must have certain amenities in place, such as a shared kitchen and living space.
Why Invest in HMO?
There are many reasons to invest in HMOs, but the two main reasons are:
– Higher returns: Because HMOs can be rented out to multiple tenants, they have the potential to generate higher rental income than traditional buy-to-let properties.
– Less void period: HMOs tend to have shorter void periods than traditional buy-to-let properties, as there is always high demand for this type of accommodation.
How to Get Started with HMO Investment?
If you’re interested in investing in HMOs, the first step is to contact an estate agent who specialises in HMOs to help you find a suitable property. Once you’ve found a property that meets the criteria for a HMO, the next step is to obtain planning permission (if does not have a HMO use already) from the local authority. Once you have planning permission, you can then go ahead and purchase the property.
Is HMO Investment Right for You?
HMO investment is a great way to generate high returns and achieve long-term capital growth. However, it’s not suitable for everyone. Before making any decisions, it’s important to speak to a financial advisor to see if HMO investment is right for you.
What is the cost of buying a HMO in the UK?
The cost of buying a HMO can vary depending on the size and location of the property. However, you can expect to pay anywhere from £150,000 to £500,000 for a typical HMO property.
The Best Strategy for Your Property Portfolio
If you’re looking to invest in HMOs, the best strategy is to diversify your portfolio across a number of different HMOs. This will help to spread the risk and ensure that you’re not relying on just one property for your income. It’s also important to remember that HMOs are long-term investments, so you should be prepared to hold onto the property for several years.
Mistoria Group has over a decade of experience in the HMO market. They can help you find the right property and manage your property throughout the tenancy agreement. They also offer a full range of services, including tenancy management, rent collection, and maintenance.