Investment Property in Luton

Invest in Real Estate in Luton

Investment Property in Luton
Investment Property in Luton

Luton property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Luton .

Search Map of Luton Investment Real Estate

Luton is a town and unitary authority with borough status, in Bedfordshire, England. At the 2011 census, the Luton built-up area subdivision had a population of 211,228 and its built-up area, including the adjacent towns of Dunstable and Houghton Regis, had a population of 258,018. It is the most populous town in the county, 18 miles (29 km) from the County Towns of Hertford, 20 miles (32 km) from Bedford and 29 miles (47 km) from London.

The town is situated on the River Lea, about 30 miles (50 km) north-north-west of London. The town’s foundation dates to the sixth century as a Saxon outpost on the River Lea, from which Luton derives its name. Luton is recorded in the Domesday Book as Loitone and Lintone and one of the largest churches in Bedfordshire, St Mary’s Church, was built in the 12th century. There are local museums which explore Luton’s history in Wardown Park and Stockwood Park.

Luton was, for many years, widely known for hatmaking and also had a large Vauxhall Motors factory. Car production at the plant began in 1905 and continued until the plant’s closure in 2002. Production of commercial vehicles continues and the head office of Vauxhall Motors was in the town for many years, but relocated in 2019 to the village of Chalton, Bedfordshire on the northern border of the Borough of Luton. Transport is provided by London Luton Airport, which opened in 1938 and is now one of Britain’s major airports, with three railway stations also in the town. The University of Bedfordshire was created from a merger with the University of Luton; two of its campuses are in Luton.

Luton Town Football Club, nicknamed the Hatters, due to the town’s connection to hatmaking, has had several spells in the top flight of the English league as well as a Football League Cup triumph in 1988. They play at Kenilworth Road, their home since 1905; planning permission for a new larger stadium was approved in 2019. Luton International Carnival, the largest one-day carnival in Europe, is held on the day before the last Monday in May; the Saint Patrick’s festival is held on the weekend nearest to Saint Patrick’s Day as there is a large Irish community in Luton. The town also has a large Pakistani community which, along with the Irish, were attracted to employment at the Vauxhall car plant. Luton Hoo is an English country house, estate and Grade I listed building originally designed by Scottish architect Robert Adam but later transformed to the designs of Robert Smirke.

The financial stability of Luton has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

 

Buy to Rent in Luton

 

Renting out your Luton buy-to-rent investment property can grow wealth and income.

 

Whatever your goals with investment property in Luton are – preparation is key.

 

  • Set goals based on how much rental yield will be required and the local rental yield rates in Luton and be prepared to change your initial outlook.
  • Thoroughly research the Luton location with a special emphasis on fringe areas outside the main Luton metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Luton.
  • Ensure that your target investment property in Luton appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent with local knowledge and experience of property legislation will give you the best chance of success.

 

With our expert guidance, investing in Luton provides the secure knowledge that your money is working harder than it would in a local Luton bank and that future generations of your family will be left with substantial capital growth assets.

 

We are always happy to advise on buying investment property in Luton, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Luton property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Luton

Flipping property in Luton

 

Flipping property is when we advise clients to buy a Luton property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Luton market has a time to react to the renovation.

 

The Flipping Strategy in Luton

 

Investment property flipping in Luton is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Luton real estate investments are sometimes referred to by professionals as ‘distressed’ Luton real estate.

 

What is distressed Luton property:

 

  • Luton property in need of renovation
  • Luton real estate with a change of purpose and use
  • Oversold Luton property
  • Bank repossessions in Luton

Put simply, long term investors in Luton purchase the property, renovate it and make it a lot more attractive to potential buyers.

 

Calculate profit that you make from Luton investment property flipping:

 

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Luton property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

 

Experienced property developers in Luton use a minimum profit value of 22% when looking at potential Luton projects.

 

The reason for this is because there are lots that can go wrong in Luton property flipping and working on a potential margin of 22% should still leave a good margin of error.

 

Invest through a Fund in Luton

 

Property Secured Investments is a Private Equity fund that invests in Luton and many other towns and cities across Europe. The fund is only available to Sophisticated Investors and closed to United States Citizens. While this is not an offer or promotion of the fund, more information can be found at the website

Luxury Property in Luton

For luxury property investors hoping to add a superb property in Luton to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

 

A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Luton, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Luton should be entrusted to only the highest-quality agency.

Compare listings

Compare