Property investment is, particularly now (during the economic uncertainty caused by the global pandemic that we find ourselves in), one of the smartest and most secure investment strategies that you can decide on as a budding entrepreneur or investor looking to build and sustain a growing investment portfolio for the future.
Not only does a bricks and mortar investment have a better standing in the long-term, being less volatile than stocks or shares which can often shift on a whim almost daily, but with a consistently growing demand for property in the UK, capital growth potential is great, meaning you can stand to make a consistently growing sum from your investment. Better still, property investment is one of the only investment types out there that can pay out regular dividends in the form of regular rental yields (if letting out your property – a buy to let investment).
Despite all of these positives, there are still a ton of things to consider if you’re thinking about investing in property. The ones that we will be focusing on in this short guide include how should choose to invest depending on the type of lifestyle you lead, and what sorts of property investment types you should look into if deciding to put money into this strategy going forward. Read on to find out more, and best of luck with your investment journey!
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Hands-On vs. Hands-Off Investment – Which one is right for you?
Investing in property is a big decision, and so you need to make sure that if going ahead with this type of strategy, you approach it in the right way. If you’re someone that doesn’t have a lot of free time available to them, perhaps needing to focus on work full-time, then you might not be able to get involved with every aspect of handling a property once purchased.
For this reason, then, a hands-off property investment might be something that you’d want to look into – with a company looking after your property on your behalf and simply taking a small percentage fee from the rental yield that you then receive directly.
As an example of this, property investment company RWinvest, who offer a range of different prospective properties across the north west of the UK and beyond, work with developers such as Legacie Developments in order to provide investors with an experience that handles everything for them. Legacie themselves have their own on-hand management company to deal with all of the ins and outs of a property on a daily basis – such as tenant issues and alike.
If you’re someone who has time and wants to be more hands-on with your investment strategies, then you can opt to be without this support and go at it on your own. This way, you can be more personable with your approach, and potentially earn more profit if paying closer attention.
Property investment Type – Which one is right for you?
From hotel investments, to standalone detached houses, to simple parking space investments, there a range of different property types that you can decide to go with if investing for your future. Of course, these investment strategies all have different positives and negatives, and so you should look into which one suits your lifestyle the best, and which could afford you the best potential yields and growth prospects. Let’s look at one property type as a specific example:
Student Property Investment – A typically smaller, more manageable investment that is ideal for first-time buyers looking to get involved in the growing and exciting property investment space, student property has plenty of benefits.
Not only does the growing student market help to ensure that your property will be almost certainly tenanted from a buy to let perspective (provided that you choose to invest in a positive area), but the general affordability and high growth potential in city centre areas make its statistics higher than any other property type at the moment generally. The best cities for student property investment currently are Liverpool, with the highest rental yield averages in the country in its city centre, and Manchester, with one of the biggest student populations in the entirety of Europe, let alone the UK.
Read Also : 13 Reasons Why You Need a Property Manager