As a property investor you should be looking to grab the stamp duty holiday opportunity with both hands. If you are new to property investment then this is particularly good news for you as you have the chance to minimise your costs upfront.
Having a portfolio of properties is something that we recommend as do many of the property investment gurus. So in this post we will provide you with some tips and advice on how you can really give your property portfolio a good kickstart.
Decide on your Property Investment Niche
There are a number of sub niches in property investment. If you are new to the game then we highly recommend that you choose one of the niches and then stick with it. Avoid the temptation to hop from one thing to another. Once you have experience in your chosen niche you can then look at other niches if you wish to.
With residential property investment you have opportunities such as renting a property out to a single tenant or a couple right up to investing in an HMO or house of multiple occupation. Something that a lot of people do when they are starting out is to purchase a house large enough for you and your family with spare rooms you can rent.
This may not appeal to you. Not everyone is cut out for living with tenants that are paying them rent every month. If this is the case then you can just go for a buy to let or HMO property and rent to others.
It is very important that you consider who you want to rent your property to. Is your target market young professionals or are you looking at families or retirees? All of these groups will have different expectations of the accommodation they desire and the rent that they are prepared to pay.
Commercial property is not just about retail spaces, office blocks and warehouses. It also includes the exceeding popular purpose built student accommodation, short term lets, care homes and hotels for example.
There are different rules with commercial property compared to residential property. It is usual for a small scale property investor to purchase a stake in a commercial property and then leave the property management down to a qualified third party company.
Investors in this scenario will usually receive regular income as long as they hold their shares. You will often see commercial properties sold to the management company when investors decide to exit.
Short term lettings are an exception here. Usually property investors decide to purchase these properties completely. They then need to decide if they will run the short term let or leave this to a qualified third party.
Choose the best Locations and consider trends
Some towns and cities have higher buy to let yields than others. If you want to get involved in the student market then you need to choose a location that has a popular university where there are a number of students that will need a place to live. It is common sense at the end of the day.
The young professionals and student rental market are usually popular with property investors due to their proven track record. But you also may want to consider care homes as the UK has a growing ageing population for example.