Choosing The Best Strategy For Your Property Business
It is well known that investing in property is hugely beneficial, however, not many people are aware of just how many different ways you can choose to invest in property. When you decide that you’d like to start a property business, whether it is something you will do full time or in addition to your current job, it is undeniably worthwhile considering the many different strategies that you have when investing in this way.
Aside from the two most obvious property investment strategies, buying a property then renting it out and buying a property then selling it on for a profit, there are actually many others that may be beneficial to you. There are various strategies that appeal to different people and being aware of your options is the best way to ensure you’re choosing what’s best for your individual needs. So, below, are the different property investment strategies that you should know about when deciding how you’re going to invest in property.
As mentioned above, this is one of the most obvious property investment strategies and it is incredibly popular. Buy-to-let residential properties are fairly simple in principle and this, alongside the benefits of this strategy such as good rental yields and capital growth over time, is what makes it so popular. It is undeniably a brilliant strategy for many property businesses.
House of Multiple Occupancy (HMO)
Many aren’t aware of the term HMO, but it is essentially when one property is rented out room-by-room, for example, student properties and accommodation. This type of investment has grown dramatically in popularity over recent years and whilst it is considered to be more work, it also has many bigger financial benefits. So, don’t overlook HMOs as an investment strategy.
These are properties which are let out on a short term basis, such as holiday lets. This property investment strategy is known for being incredibly profitable but, is often forgotten by property investors. This type of property is an alternative to hotel rooms these days and as holidays in the UK gain popularity, it is a property investment strategy that should always be considered.
It isn’t uncommon for people to forget all about commercial properties when starting a property business but they can be a brilliant choice too. It goes without saying there are many different types of commercial properties available to invest in and there are also so many benefits to opting for this strategy, so it is definitely worthwhile looking into in more detail.
You may also hear these referred to as a buy-to-sell or flipping property strategy. This is when you purchase a property, refurbish it and then sell it on for a profit. Whilst it is very different from everything mentioned above as you won’t be renting/letting the property, it still has its own benefits. If you’re not interested in being a landlord, you should consider this strategy.
Again, this is slightly different, it is essentially a temporary partnership that is formed for a particular development project. So, you will work closely with others who have skills required when investing in property. Joint ventures can be incredibly successful and provide a brilliant return on investment. This property investment strategy shouldn’t be forgotten by any investors.
Deciding which property investment strategy to choose
Now that you’re aware of the many different options you have when you’re wanting to invest in property, hopefully, you will find it easier to choose a property investment strategy that will work well for you. Of course, you will have many different things to consider when choosing between the options above, so take your time, do your research and don’t be afraid to reach out to a professional if you need some assistance.
Here at Fielding Financial, we can provide you with the help you need when learning more about property investment strategies before deciding which to choose. We have a range of different courses that may be beneficial to you, both general and also more specialised, and also a range of informative blogs that are worthwhile reading too. Of course, if you have any questions at all, don’t hesitate to contact us today.