Property investment can be a very lucrative business but there are lots of different property strategies to choose from. If you are considering buying your first property and beginning to build up a property portfolio, your first step is to decide on which property strategy will suit you the best.
How to decide on your property portfolio strategy
Buy to Let is one of the most common strategies, either buying a property to rent to one tenant or buying a property to convert to an HMO and increasing the potential rent yield. If you are thinking about Buy to Let, you need to decide whether you will manage the tenancy yourself or get an agency to do it on your behalf.
This decision should come down to how much time you have and also how much experience you have. If you do not know much about managing tenants and the legal requirements as a landlord, your best option is to instruct an agency to manage the tenancy on your behalf, paying for their services.
Another common property strategy right now is investing in UK holiday accommodation, as this is in incredibly high demand right now due to foreign travel restrictions and concerns about travelling abroad. This is becoming a particularly lucrative property strategy, so it could be a great option to get you started. This type of investment is ideal for overseas investors, first time investors or investors with little time on their hands. The “hands off” model provides investors with little stress and even less effort.
Your first investment to develop your property portfolio…
Although every investment is important whilst building a portfolio, arguably the first one has the most effect. If you can find an investment that can accelerate your portfolio quickly then this is perfect. When deciding to purchase your first investment it is very important to speak to an investment consultant. Every client has different needs and wants but also has different obligations and considerations. This is why it is important to spend time going through your personal situation with a consultant so they can best advise an investment whilst minimising your risk.
Finding the right area
One of the other really important aspects of building your property portfolio is finding the right area. For example, if you are thinking of providing student accommodation, you would need to find a property that suits students’ requirements, such as being close to the university, near to good transport links and not too far from shops, pubs and bars.
If you are looking to rent to professionals, the area would need to match their priorities, with a suitable quality of property, within close proximity of the city centre or with good travel links to the city centre, to attract more people working in the city.
It is important to decide what your ideal tenant is before you buy a property for Buy to Let, so that you choose the right type of property, in the right place, so you know there will be high demand and you will be able to find tenants easily, avoiding months where there is no rental income.
For holiday accommodation, you want to make sure the property is in an area that is in high demand for holidaymakers or alternatively a site that has a large brand name. Places that are close to beaches, places of natural beauty and offer a peaceful, tranquil getaway are highly sought after.
Buying a luxury holiday lodge is an ideal property investment strategy in the current market, as developments are much easier and cheaper to find than say buying a cottage, for example, and lodges have become a very popular holiday accommodation choice.
For an example of holiday lodge investment find out more here: https://advantageinvestment.co.uk/landal-barnsoul-shawhead/
Or to speak to an Investment Consultant about building your portfolio either call or email us on:
