How to select an investment property

Successful investing in bricks and mortar involves many difficult and time consuming factors. Our platform is designed to address them all.

But the composition of the right portfolio lies at the heart of it. Here are some important principles that investors should consider.

Understand how our property team choose investment opportunities

The process for selecting properties is led by our Chief Investment Officer, Robert Weaver. Robert is a hugely experienced residential property buyer, and the former Global Director of Residential Investment at RBS. A Fellow of the Royal Institute of Chartered Surveyors, Rob sits on the residential committee of the British Property Federation. He and his team have over 150 years, 31,880 units and £2.25 billion worth of experience.

The team assess each property based on eight criteria, which you can read more about here. After rigorous analysis of all factors, a shortlist of properties is created, then signed off by our Investment Committee. The result is that only carefully selected investment opportunities that we would personally invest in make it onto our marketplace.

How would you like to earn your returns: rental income or capital gains?

The key is to know your investment goals. Is your priority to maximise revenue through strong rental income? Or is it to target long-term capital gains, with rental income only a secondary consideration?

We offer three property asset classes: Residential, Commercial, and Purpose-Built Student Accommodation. Each asset class has the potential to earn returns, but in different ways. You can read more about the characteristics of each asset class here:

Another way you can balance your portfolio between rental income and capital returns is by investing in certain regions. For example, the North of England tends to offer higher yields as rents are higher compared to the property cost. By contrast, yields for London commuter belt properties are generally lower. Growth has squeezed yield in these areas, and investors believe they will be compensated by further capital growth.

Finding the balance between these types of properties is key. Serious investors acquire shares in a variety of property types and locations, to ensure they are not over-exposed to any one segment of the market.

What else will affect the investment?

It’s also worth considering other factors which may be influential. For example, there may be a regeneration plan that will impact future prices. So far, the Crossrail development has catalysed price growth along its entire length.

Government investment projects may affect future prices. Abbey Wood, for example, is undergoing a substantial makeover, with a gleaming new station, library, and shopping concourse. There are no guarantees in investing, but the potential impact of those millions on the locality warrants investigation.

Property Partner helps with this research. Factors such as schools, transport links, and local attractions are usually cited in the listing’s investment case. It is possible to filter the marketplace based on this criteria, such as proximity to Crossrail.

Know the numbers

It’s essential to look closely at the financial numbers before investing. Our platform offers all sorts of useful indicators for each listing, such as rent forecast, mortgage details (rate, length, and fixed or variable contract), and the historic house price index for the locality. We also include the aforementioned growth forecasts from major research houses where relevant.

The forecast dividend yield is certainly an important figure when it comes to choosing an investment. Paid monthly, this is a measure of the income from a property investment relative to the value of the property. Property Partner will always quote this return net of all property maintenance costs and Property Partner fees.

However, the forecast total return should not be ignored. This is the total gain (or loss) generated from holding an investment, and includes all dividends received, capital gains achieved and transaction costs paid over a certain period. We usually quote forecast total return over a year (annualised) or over five years.

These numbers are especially important when it comes to choosing properties according to whether you want to achieve returns primarily through monthly rental income or capital appreciation. Assuming the property is fully let, rental income can be a more reliable form of income, yet the rewards earned through capital gains can far exceed this if the value of the UK property market increases.

No matter what numbers you look at, the universal principle of investing is to diversify. A broad spectrum of holdings is a great way to reduce the impact of an unwelcome event.

Review your strategy over time

Over time it may be necessary to make adjustments. Perhaps you need to cash out a fraction of your holdings, or see a better opportunity elsewhere on the marketplace. This is where Property Partner stands out from the traditional market. Our Resale market allows shares to be listed for sale and made available to other investors. This is a huge advantage over traditional buy-to-let, whereby a sale in a property is all or nothing, incurs legal costs, and can take months to arrange.

Though building an investment portfolio can seem a complicated, labour-intensive task, the Property Partner platform is designed to make this process as easy and simple as possible. We list the important information and investment figures for each property, not forgetting the fact that we firmly believe in the integrity of every investment opportunity that we offer our clients, having carried out thorough due diligence on the deal. If you would like to speak to our team about a specific property on our platform, please call us on +44 (0)20 3696 5600 or email us at

Property Partner does not provide investment or tax advice and any general information is provided to help you make your own informed decisions.

Capital at risk. The value of your investment can go down as well as up. The Financial Services Compensation Scheme (FSCS) protects the cash held in your Property Partner account, however, the investments that you make through Property Partner are not protected by the FSCS in the event that you do not receive back the amount that you have invested. Past performance is not a reliable indicator of future performance. Forecasts, if stated, are not a reliable indicator of future performance. Interest and capital returned may be lower than expected. Gross rent, dividends, and capital growth may be lower than estimated. 5 yearly exit protection, exit on platform, exit in line with a specific investment case or fund strategy, subject to price and demand. Property Partner does not provide tax or investment advice and any general information is provided to help you make your own informed decisions. Customers are advised to obtain appropriate tax or investment advice where necessary. Financial promotion by London House Exchange Limited (No. 8820870); authorised and regulated by the Financial Conduct Authority (No. 613499). See Key Risks for further information.