The Best Types of Property Investments in 2019
In general, people assume that investing in property of any kind is a wise decision. However, as many investors will know, that is far from the truth. Things can still go terribly wrong, Before buying a property, the investor needs to analyze if it is a worthy risk. We have taken the time and examined the property investment opportunities out there. Here are our recommendations for the best types of property investments in 2019.
Buy-To-Let Property Investments
In recent years the demand for rental properties in the UK has soared. With the large deposits demanded on property purchases, youngsters are struggling to save up the cash. They do, however, have a strong desire for independence. Young professionals will often move away from their hometown or even stay in the city where they attended university. This usually means being away from their family and results in them needing a rental property. Sometimes it is small families that seek a rental due to the lack of funds available for a deposit.
At first glance, a buy-to-let investment looks like a lot of work. The high levels of involvement needed after the purchase are a put-off. But, this doesn’t have to be true. Some investors do not have the time to manage their rental properties, and they allocate the responsibility to a property management company. They have limited involvement in it and can focus their time elsewhere. Currently, there is a huge rental demand and investors are getting in on the action. Renting a property and buying a property to rent out, has been a long-standing investment method and will continue to be. But, with the current lack of housing that the country has, buy-to-let investments are essential for local communities.
Investing in Property: Apartments
Though it may seem pretty obvious, apartments are also a good investment. Especially in 2019. One of the many benefits of investing in a flat is that the typically lower sale price makes getting a mortgage easier. Over the last 20 years, the number of renters has more than doubled. Not only that but a greater number of renters seek an apartment as opposed to a house. With renting houses still being quite costly for some, apartments are highly sought. Typically, flats also have fantastic transport links which greatly benefit non-drivers. New apartment developments are popping up around the country in efforts to meet the increasing demand. Young professionals and entrepreneurs are drawn to new build apartments as they are usually located in metropolitan areas. With lower overheads, they can afford their independence while working to better their careers.
Purpose Built Student Accommodation
There is a rising interest surrounding purpose built student accommodation investments. Again, it comes down to demand. When students around the country participated in a survey, it quickly became evident that quality accommodation was in short supply. A good number of the student population are slumming it in damp and mouldy apartments with poor amenities. In the UK’s university cities with high student populations, purpose-built student accommodation developments are increasing. This is excellent news for investors. Students too will benefit from the added developments offering decent living quarters.
Purpose built student accommodation is usually located within walking distance of universities. Most have a selection of communal areas that are designed to meet student needs. As at now, limited range in student housing has forced them into privately rented property. This is not a preferred option. It usually means shared accommodation, complicated deposit systems, overpriced rent, and poor conditions. The increasing demand for student accommodation shows great strength in this type of property investment.
The recent popularity of hotel room investments has soared. With its attractive rental yields, this is not surprising. There are several types of hotel room investments, but fundamentally, they are a hands-off investment opportunity. Most of them are classified as short term investments as after a time period of about 5-10 years, the seller buys the room back. With this type of opportunity, you would need to have a good understanding of the developer and the hotel group themselves. As well as being a form of property investment, it is also an investment in the company.
Another aspect to consider is that it is unlikely that a bank would issue a mortgage on this type of property investment. On the flip side, hotel room investments do not usually incur stamp duty tax. Overall this type of investment is great for investors looking to diverge from the world of buy-to-let or purpose-built student accommodation. It is simple, relatively straightforward, and completely hands-off.
Other Types Of Property Investment
The property market has been lagging slightly recently. Brexit has played a big part in this as buyers have waited until a deal was established. The whole deal or no deal situation didn’t faze first time buyers, but it definitely caused some uncertainty among investors. All of this has put a slight downer on house flipping. Another slow area in the market is in commercial properties. For the past few years, things have started taking a few steps back, with many major brands selling their assets and others making cuts. This year alone, many corporations have been relocating outside of the country’s capital to a more cost-effective city, primarily in the northern region. All property investment tips include choosing an area with a promising future, which will likely remain an important factor for years to come, if not forever.
Every property will or won’t deliver on different objectives, the job you have as an investor is deciding on what those objectives are. Once you know what type of investment you want, there is then the challenge of finding it. The property market, while it does fluctuate, can still provide people with their desired investments. They might not always be in the area you hoped for or at the time you wanted, but that’s just part of the challenge. Like most things, it is evolving quickly.