There is a lot of concern amongst the property investment community in the UK at the moment. This is all about the implications of Brexit in 2019 and the impact it will have on the property market. Nobody can accurately predict what is going to happen but we believe that UK property investment opportunities will continue to exist.
To succeed with property investment in 2019 and beyond you need to think about some different options. So we have brought you our ideas on the best strategies going forward. You need to believe that good property investment opportunities will still exist after Brexit because they will.
You have probably heard this a million times. Don’t put all of your eggs in one basket. Building a portfolio on property investment strategy is risky. A problem with this strategy could have a negative impact on your total portfolio.
Spread your risk over different property investment strategies. Look for new investments that are not correlated with your previous ones. If the market takes a turn for the worse it is likely to hit specific investment strategies. You do not want to lose everything.
Conversion of Commercial to Residential
There are tons of vacant commercial properties in the UK. The hypermarkets and the Internet have taken their toll on local shops. You can turn this to your advantage. Find a vacant shop in a good residential area and convert it to a residential property.
Sure this will take effort. There are planning and other issues to overcome. But very few property investors will be competing with you with this strategy. You can make a very nice profit on these commercial to residential conversions.
Invest in HMO’s
If you are looking for a good investment in a town or city then HMO’s (housing with multiple occupants) is one of the best ways to make a significant return. It is more profitable to rent out individual living areas in a large property than it is to rent the entire property to one tenant.
Some people don’t like investing in HMO’s because they believe that they are too much work. Well they certainly can be but the increased returns make it all worth it. There are a number of things that you can do to lessen the workload so don’t use that as a reason not to consider HMO’s.
No matter what is happening in the economy the demand for student rentals is always going to be there. Students obtain loans for their accommodation expenses and other things so they will pay their rent.
Most students do not expect their accommodation to be fabulous with all of the latest gadgets. Their expectations are lower than that of professionals so the risks in the student market can be lower. Read our article on the opportunities presented by the student rental market.
Get into the Housing Benefit Market
In this scenario people on low incomes receive an allowance from their local council to rent accommodation. This is a good opportunity as the council will pay the rent so you will not be chasing tenants. Always check out whether a council will pay you directly as a landlord because this is the best scenario.