4 Property Investment Opportunities In The UK
Sometimes it’s hard to know where to start when investing in properties in the UK. There are lots of reasons why you might want to do this, from wanting to have extra money or have another project to fill in your time. The UK has a lot of investment opportunities that may suit you, such as being a landlord of a property to owning shares of a property. There are also many ways you can invest that you may haven't thought of. The property market is usually more stable than other investments because you may get a steady income from renters, whether it’s a residential or commercial property.
Here are 4 Key Property Investment Opportunities for you in the UK:
1. Buy to Let Investments
This is where you buy a property with the intention to make money through leasing. The monthly income you’ll get from having renters will be profitable and can put you towards having your own mortgage as extra money. If you like having an investment that you can see and potentially do up to earn more money, then this might be a great choice for you. It’s important for you to know that with this property investment, the prices can go up and down, it may not be the steadiest investment, but it’s a popular choice for a reason. Everyone needs somewhere to live and there are always people looking for a property to rent. You may like to buy an apartment in or close to the city, or a house in the suburbs. Either way, the price and renting rate will be different depending on where you will buy them. To make this type of investment more secure, you may like to purchase landlord insurance as well as their building insurance.
2. Buy to Sell Investment
The short-term investment method involves buying property, fixing it up, and selling it. This will cost you a higher price than the price of when you bought it. This can be a good investment idea if you choose the right property and able to have a fixed budget for it. This is because you don’t want to buy a property that needs more work and money, than what you could actually sell. If you end up putting in more money than getting from it, then you may end up losing more money. Another risk with this method, when the property market drops and suddenly the house is worth less than what you originally bought it. However, if done correctly, this method can lead to quicker capital growth, which will enable you to move onto your next buy-to-sell investment.
3. Property Development Investment
There are many ways you can start doing property development in the UK. This is where you buy a property and upgrade it completely or change the purpose and make a profit from it. For example, an old commercial building being renovated into a residential home. If you don’t want to convert something that already exists, you might want to buy land and build a new property such as apartments or units. On the other hand, there are many disused or otherwise run down buildings in the UK that are frequently Selling at Auction, buying a property that needs renovation will likely not cost anywhere near as much as one in a finished state, this might free up more of your budget to make renovations or changes to the property in order to better increase it's value. Once you’ve developed the property, you can sell it at a higher price. This can be done on a small scale, like a house, or in a larger scale, like a factory. If done correctly, this can be a very lucrative investment.
4. Real Estate Investment Trusts (REIT)
If you don’t want to own property directly, REITs will allow you to own them indirectly and still gain the investment benefits. Usually, people who have REITs spread their investments over a few properties which help them to keep it stable. They originated in the US in 1960 and since then they have been established in 20 other countries. In the UK, REITs qualifying rules are covered by three categories:
Company conditions
Property rentals
Balance of business condition
In the UK they must operate as rental businesses. There are lists of REITs companies in the UK that someone can look into to get started in the business.
In Conclusion
There are a lot of property investment opportunities in the UK that might be perfect for you. Possibly the most common investment is a buy-to-let investment, because you get a steady income from renters. You might prefer to buy, fix up and sell property, or even do some property development on a major scale. If you don’t want to be directly involved with property, then REIT might be the best option for you.
