The Smarter Way to Invest: Supported Living vs Buy-to-Let.

Keira Fry
5 days ago
3 min read

🏡 Why One Supported Living Investment Could Outperform Three Buy-to-Let Properties

When most property investors think about building wealth, they picture a portfolio of buy-to-let properties. It’s a tried-and-tested model: buy multiple units, rent them out, and watch the income roll in. But what if there’s a smarter, more efficient way to achieve better returns—with less stress?

Let’s break down how one supported living investment could outperform three traditional buy-to-let properties, using real-world numbers and practical examples.

🏘️ The Traditional Buy-to-Let Strategy: More Properties, More Problems

Let’s say you have £150,000 to invest. You decide to split this across three buy-to-let properties, each worth £200,000, using 25% deposits and mortgages for the rest.

📌 Example: 3 Buy-to-Let Properties

Stamp Duty: ~£7,500 per property = £22,500 total
Legal Fees: ~£1,500 per property = £4,500 total
Mortgage Setup: 3 applications, 3 arrangement fees (~£1,000 each), 3 valuations
Interest Rate Risk: If rates rise from 4% to 6%, monthly payments could increase by £300–£500 per property
Management: 3 boilers, 3 roofs, 3 sets of tenants, 3 sets of repairs
Tenants: Vetting, referencing, chasing rent, handling complaints
Void Periods: 1 month empty per year per property = 3 months of lost rent
Service Charges: If flats, expect £1,000–£2,000 annually per unit
Exit Strategy: Selling 3 properties = 3 estate agents, 3 sets of fees, 3 market risks

💰 Financial Snapshot

Gross Yield: ~5–6% per property
Net Yield (after costs): Often closer to 3–4%
Time Involvement: High—active management required

Even with rising property values, this strategy demands constant oversight, risk management, and hands-on involvement.

🏡 The Supported Living Investment: Simplicity with Strong Returns

Now, let’s look at investing the same £150,000 into one supported living property. These properties are leased to housing associations to provide long-term accommodation for vulnerable individuals.

📌 Example: 1 Supported Living Property

Stamp Duty: Often reduced or exempt due to social housing status
Legal Fees: Sometimes covered by the provider
Mortgage-Free: No borrowing = no interest rate exposure
Passive Income: Yields of 10–12% in year one, increasing annually by inflation +1%
Lease: 25-year FRI (Full Repairing and Insuring) lease with a housing association
Zero Management: No tenants, no maintenance, no calls at midnight
No Void Periods: Rent paid regardless of occupancy
Exit Strategy: Sell with lease in place—attractive to passive investors

💰 Financial Snapshot

Gross Yield: 10–12%
Net Yield: Often above 10%, with minimal deductions
Time Involvement: Virtually zero

This model offers peace of mind, predictable returns, and true passive income—ideal for investors who want to grow wealth without the headaches.

🔍 Comparing the Two Models

Feature	Buy-to-Let (3 Properties)	Supported Living (1 Property)
Stamp Duty	£22,500	£0–£5,000
Legal Fees	£4,500	£0–£1,500
Mortgage Risk	High	None
Management	Active	Passive
Tenant Risk	High	None
Yield	~5–6%	10–12% (inflation-linked)
Lease Term	Rolling ASTs	25 years (FRI)
Void Periods	Likely	None
Exit Flexibility	Complex	Straightforward

📌 Final Thoughts

Traditional buy-to-let investing has long been the default strategy—but it’s no longer the only path to strong returns. Supported living investments offer a compelling alternative:

✅ Higher yields
✅ Lower risk
✅ Zero management
✅ Long-term security

If you're looking to simplify your portfolio, reduce exposure to market volatility, and secure long-term income, supported living deserves serious consideration.

📞 Ready to Invest Smarter?

If you're looking to simplify your property portfolio, reduce risk, and secure long-term passive income, supported living could be the solution you've been searching for.

Contact us today to learn more about available opportunities, how the model works, and how you can get started:

📧 Email: info@supportedlivinginvest.com 📞 Phone: 01992 245287🌐 Website: www.supportedlivinginvest.com