Property investment in the UK has only seen an upward curve and has been largely unaffected by various economic crises. This trend looks very enticing to many who want to invest in property in uk to maximize profits. UK has been able to quench investors’ thirst for years now and has proven to be the most lucrative market in all of Europe nearly beating out America and Australia. It is the moneymaking combo of an undersupply of property and rising demand and population.
UK also offers a variety of options for investors looking to diversify their options.
5 Proven Property investment options in UK
This type of property is self-explanatory. Investors buy properties to let them out to tenants.
The purchase can either be done with the help of a B2L mortgage or paying upfront or other financing methods.
There are three different kinds of B2L based on the type of occupants.
- Student Accommodations
- Commercial and Office Spaces
2). Holiday Lets
Investors commonly capitalize on the cultural and historical significance of a city and build holiday lets for vacationers.
This type of short-term let will allow investors to earn back their investment through rental income during the busy season.
Another reason that draws investors to this is the various tax benefits offered by the UK government.
Rent-To-Rent is a popular investment option among those who don’t have the monetary resources to purchase their own property and start their business.
Property agents act as middlemen and find landlords who want to diversify and tenants looking for stay options.
Depending on the tenants, they make their income through rents, paying the landlord and the staff what they owe, and keeping the rest of the profits for themselves.
This has proven to be a great option for anyone who is trying to get into the property business but doesn’t have any capital. There are three different kinds of R2R based on the type of occupants.
- HMO (House of Multiple Occupants)
- SA (Serviced Apartment)
Investors commonly buy dilapidated properties at a low cost, fix them up to meet today’s standards, and increase their value only to sell them for a higher price to someone else.
This method of investment is called BRRR or Buy Refurbish Rent Refinance.
The cost of purchase of property and the refurbishment is compensated with higher profits once the sale is made. Small details you must never miss out on before the property refurbishment starts!
Investors who don’t want to invest in property directly can do so through stocks. Real estate Investment Trusts or REITs are companies that own investment properties and trade the stocks making them more of a liquid investment.
If you are an investor who doesn’t want to commit to the buying cycle and with finding tenants and agents, can easily buy stocks thereby making profits whenever the company performs well.