Investing in real estate is one of the most reliable ways to earn a steady income and appreciate your finances. For our investors, we have prepared four categories of properties that are designed to suit different needs and preferences.
Here is a detailed description of each:
1. Top category
This category offers apartments with a guaranteed tenant, which means that the investor is assured of a steady income without any need for active management. Management, maintenance and rent growth costs are covered and automatically increase each year for inflation. This type of investment is ideal for those looking for a completely passive income.
Management intensity: 10 (almost zero)
I successfully sold my first such apartment to an investor in August 2023, and nine more have followed since then. Based on feedback, this type of investment is comparable to a real estate fund, which means minimal need for active intervention after ownership transfer.
2. Second category
The second category focuses on newly constructed properties that offer long-term leases to families, couples or individuals on standard leases. This type of property provides a stable and more passive income due to the excellent location and quality of the housing facilities, which ensures attractiveness to a higher category of tenants.
Management intensity: 8 (low)
This offering is priced in the mid-range financial category, reflecting the excellent value for money given the high quality of new builds and desirable location.
3. Third category
Student housing combines a stable income with a low need for active management. Students are cared for by a professional manager who has control of the entire building. The residential building is equipped with a reception and is occupied exclusively by students, who are supervised at all times to avoid breaking the night-time peace.
Management difficulty: 6 (moderate)
Investors can look forward to a steady rental income as the demand for student housing in attractive locations grows. Student housing is popular for its low price, which starts from as little as CZK 1.2 million.
4. Fourth category
The fourth tier is represented by classic English houses, which are priced around 2 to 3 million crowns. These properties are very affordable and have secured a professional manager. Management can be slightly more challenging due to the need for regular communication with the manager.
Difficulty of management: 5 (medium)
These homes give investors access to higher yielding properties but require more frequent supervision and communication. Nevertheless, they remain an attractive option for investors looking for affordable and profitable investments.
Management intensity scale
- Extremely high intensive communication and management by the investor in person, high time intensity. Conversion, refurbishment, short-term rental, poor quality tenant, etc.
- Very high management intensity, frequent interventions and supervision of operations.
- High management intensity, need for regular communication with tenants, ensuring maintenance and certificates.
- Higher management intensity, frequent communication with tenants. Absence of a manager. Everything is handled by the investor (from this level down you will not find any properties listed on this site).
- Moderate management, stable income with minimal need for active intervention. No requirement to be on site or in negotiations with tenants. Everything is done remotely.
- Moderate intensity, regular inspections and communication are required.
- Low management intensity, requires occasional active investor participation.
- Low intensity, requires occasional checking and administrative activity.
- Very low management intensity, most processes are automated.
- Almost no need for active administration, everything is provided automatically.
Investing in UK Properties: Opportunities and Guidance for Overseas Buyers
You will not find a management level lower than 5 on adamwojnar.com. This grade still means that the property is being looked after by a professional manager and the presence of an investor on the property site is not required. Communication with the manager is more intensive, but all operational tasks are handled remotely. Even at this level, you can rest assured that your investment will be carefully managed without the need for your personal supervision.
Are you considering investing in a property in England or have you already started negotiations? Over the last two and a half years I have been involved in the purchase of 34 (and counting) investment apartments and houses in the UK. I own four investment homes there myself. My colleagues and I are now opening our own estate agency around Newcastle. We will be specialising in foreign investors. Let’s set up a video meeting (click on the link) and pick a date in my calendar. I’ll be happy to lend my assistance to your purchase as well.
Adam Wojnar
