property assets

2023 Could Be the Ideal Time to Acquire Property Assets – and Here’s Why

Uncertain times often throw up great opportunities for savvy investors. While many smaller landlords are cutting their losses and selling their buy-to-let properties in the face of rising costs and ever-increasing legislation, many larger and more experienced investors are recognising that the year ahead could present the perfect opportunity to acquire property assets, expand their property portfolios and negotiate great deals with sellers.

With strong rental demand and opportunities to snap up properties at attractive prices, here’s why 2023 could be the time to get primed for potential capital appreciation in the years ahead.

Is 2023 the Time To Buy?

Private landlords have certainly had it tough of late, with the rising cost of mortgages, increasing taxation and more stringent legislation significantly impacting on the profitability of their investments.

But as many smaller landlords continue to struggle and cut their losses by selling up and quitting the market, larger landlords who are in a position to acquire new property assets in lucrative sectors are being presented with a prime opportunity to expand their property portfolios thanks to falling prices.

Indeed, recent research by bridging loan provider Finbri shows the contrasting sentiments of smaller and larger property investors.

In a survey of 1,000 investors, it found that 67.92% of respondents with more than 5 investment properties planned to invest further and expand their portfolios in 2023. By contrast, 23.07% of investors with less than 5 properties said that increasing interest rates would cause them to sell up.

Overall, it found that 50.45% of property investors polled planned to further expand their portfolio this year, indicating investor confidence despite some challenging economic conditions.

In uncertain times like these, the year ahead may present a great opportunity for savvy investors to negotiate deals with sellers who are keen to get sales over the line.

Rents Hit Record Highs

Opportunities to strike deals on properties comes amongst strong demand for rental properties, with average UK rents hitting record highs during the final months of 2022, hitting £1,172 per month on average according to Rightmove.

It added that while more properties coming onto the market has eased slightly, there is still a large imbalance between demand and supply. It expects rents for newly available homes to rise by a further 5% in 2023.

The Opportunities and Risks of UK Property Investment

Property has long been an attractive investment proposition for many people, offering investors the chance to generate regular income along with long-term capital appreciation, with property often surpassing the returns of many other investment options over time.

For anyone thinking of expanding their property portfolio in 2023, it’s important to be aware of some of the opportunities and risks involved.

Increasing numbers of properties on the market and sellers who are keen to strike deals means the months and years ahead could be the ideal time to acquire new property assets, with the potential for capital gains if prices rise in subsequent years.

This, along with strong rental demand and high yields, makes it easy to see why many investors are looking to expand their portfolios.

Despite this, there are some pitfalls to watch out for. As ever, but arguably even more so in the current climate, it is important to have good knowledge of the market and make investment decisions that are backed by rigorous research. This will help you identify the areas and sectors that can deliver the highest rental yields, creating an asset portfolio that delivers long-term results and suits your own individual circumstances.

In addition, there are the soaring interest rates, rising mortgage costs and increasing legislation affecting the private buy-to-let sector, all of which are providing significant challenges for property owners and private landlords. For this reason, it may be worth looking at indirect investment strategies, which can allow you to invest in a diverse property portfolio without needing to own or manage any of the properties yourself.

Whichever route you decide to take, rigorous research and analysis of the market will be key before making any decisions.

Buy-to-Let Alternatives

For investors who are looking to capitalise on investment opportunities without exposing themselves to some of the drawbacks associated with owning property assets and being a buy-to-let landlord, one option may be to consider investing in an existing property portfolio such as the one built by Avora Capital.

With a growing asset portfolio backed by rigorous research and expertise, we aim to seek out only the best investment opportunities that deliver long-term results.

For more information on Avora Capital, please get in touch with our expert team who will be happy to discuss it with you.

Important note: The information provided in this article is general in nature and does not constitute personal financial advice. If you are unsure whether an investment is right for you, please seek professional advice. If you choose to invest, the value of your investment can both rise and fall so you may get back less than you put in.

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