Property Investment Advice For The UK
If you are thinking of investing in property in the UK, there is some advice that you need to know about. This advice will ensure that your investment portfolio works for you and takes the complexities of the UK market into account. Not doing so can cause a lot of problems that could easily be avoided.
Diversify Your Property Portfolio
A lot of new property investors will stick to one type of property, but this can be a problem. This is particularly problematic if you are only purchasing property in one area of the country. If you only have commercial properties in one town, you can run into problems if there is a market downturn in the area.
Having a mixture of different properties will help you spread the risk of your investment. If there is a problem with the commercial properties that you have, it can be offset by the residential properties. Diversifying your portfolio will help you when the market turns.
HMOs or housing with multiple occupants is a great option if you are looking at property inside major cities. This is due to the fact that you get a higher return on the property because of the multiple occupants. Of course, these properties will generally cost more to purchase as they are generally larger homes.
While these properties are good in terms of ROI, there are some drawbacks that you need to be aware of. HMOs are usually more time-consuming to manage because the tenant arrangement is different to normal. You will also have higher tenant turnover with these types of properties which increases the administrative work that needs to be completed.
Include Holiday Homes In Your Portfolio
When you are looking to diversify your property portfolio, you should consider including holiday homes. This type of property can provide the highest potential returns if you choose correctly. It is important to note that not all holiday homes will bring in high returns and you need to choose the property carefully.
If you are going to include a holiday home in your portfolio, you should look for locations that attract people throughout the year. Having the house occupied only in the summer months will negatively impact your returns. You will also need to take the time to market your holiday home on popular travel websites and keep the visitors happy.
Each year there are lists of property hotspots in the UK that you can look at. This will give you an idea about the areas that you should be considering, but you need to be careful. You are not the only person looking at these lists and they might already be out of your price range.
Up and coming areas are a good idea because they will provide long-term gains. One of the ways to determine if an area is up and coming is to look at the businesses moving in. if there are plans for M&S or Waitrose, the area is up and coming and you should get in there as soon as possible.
If you want to invest in UK property, you need to do your research first. There is a lot of advice that you can use, but due diligence is the only way to ensure success.