Property Investment in Liverpool

Liverpool is one of the most famous cities in the UK, well known for its musical heritage, successful football teams and standout regional accent. Liverpudlians, or Scousers as they are popularly known, have a proud local identity, but are also welcoming to tourists and immigrants from all over the world.

Liverpool is a historically important UK port but now relies less on the port as an economic resource, with the rest of the city undergoing a financial and physical resurgence. This has only been aided by the city’s flourishing tourism sector, boosted with the award of the European Capital of Culture in 2008.

This economic prosperity and increasing investment in various sectors of private enterprise has been an appealing focal point for student property investors over recent years, looking to benefit from the ever-present upsurge.

Employment figures are improving in line with the national average. The service sector accounts for the majority of employment in areas such as public administration, education, health and finance. A steady stream of tourists make Liverpool the fifth most visited city in the UK, bringing in over £1 billion to the local economy every year.

Another recent regeneration project has taken place on Liverpool’s Waterfront area with a £40 million exhibition centre and £26 million hotel expected recently completed. In addition to a £1.5 billion scheme to regenerate the Kings Dock and Lime Street areas, Liverpool is fast becoming one of the UK’s most desirable cities to live and invest in.

Why Invest in Student Property in Liverpool?

The University of Liverpool is the city’s most prominent higher education institution, founded in 1881 and boasting 9 Nobel Prize winners within its alumni. It offers over 250 Bachelors courses across 54 departments, homing around 19,000 students of mixed nationality. John Moores University has the largest student population in Liverpool, with a healthy number of new applicants each year. The university has links with over 400 companies providing a viable route into employment for many graduates.

Liverpool Hope University gives prospective landlords more scope to invest in property away from the metropolitan area. However, the university has fewer students in comparison with its regional counterparts, numbering around 7,000. Academically, Liverpool Hope is divided into 3 main faculties – Arts and Humanities, Education and Science – which have been the subject of multi-million pound refurbishments over the past few years.

A HMO (House in Multiple Occupation) property can provide an 8% minimum cash rental yield and a typical 13% total cash yield, including 5% capital appreciation.  The average gross cash rental yields for the student property sector in Salford were 8.1% for the 2015.

HMOs or Student Pods?

Student pod investments require careful consideration and it is important you look at not only the opportunity, but also the risks too.

Some of the main disadvantages of student pods are their resale value and capital growth potential. As you know, the value of property will fluctuate with the market and the pool of potential investors is much smaller for pods against those for other types of student accommodation, such as HMOs.

A standard buy-to-let allows you to sell your property investment at a time of your choosing on the open market. You can expect a reasonable capital appreciation. If you are selling a student pod however, you may encounter problems. For example, who decides the market value? As a piece of real estate per sqm it is very expensive (double the average market value) and there is no established resale market as there is with regular houses. Is it an investment, or is it a piece of real estate?

There is also the issue of guaranteed returns of 7%. Guarantees are only as good as the firm that is promising it. Investors need to decide if they think providers of student pods are robust enough to stand behind their guarantee. They should also be aware that the 7% guarantee may not stand in five years’ time, when their investment could have devalued as new developments are released.

Why Use the Mistoria Group?

Mistoria are local experts, based in the North West and with a Liverpool office, this is our field of expertise. We have many examples of successful investors who have been with Mistoria for many years and continue to use our services to build their investment portfolio. We are also financially stable and our Group companies cover every aspect of the business, from identifying the correct properties and locations through to managing the property and finding the tenants.

Our investments work and we can show you how. Successful property investment is not about future promises, it’s about a proven track record of success and the Mistoria Group is proud to demonstrate ours.

If you would like to know more, then simply contact us using the form below and one of our team will be in touch.

Still Have Questions?

Then lets talk. Complete this form and one of our team will ring you to discuss this opportunity.

We don’t hard sell – it’s no way to start what we want to be a long term relationship – we will simply talk you through our investment products to see if they are the right fit for you.

We look forward to hearing from you.

Investor Summary

  • Excellent returns from North West region

  • Stable investment in student property

  • Proven track record of success

  • Local expertise and staff

  • Growing investment in Liverpool

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