The attractiveness of investing in real estate in the UK is growing every month, because this direction is the most stable in the conditions of world economic changes. However, there are many types of investment and financial management strategies available on the real estate market. In this article, we’ve gathered the best tips and insights from investors that will help you better understand the process of effective investments.
Let’s consider three main options:
- real estate for rent
- real estate for resale
- holding share or stocks ownership of a real estate company.
It sounds simple, but each of these options has many approaches. We suggest you consider several promising strategies of real estate for rent.
The classic strategy of buying real estate for rent is suitable for those considering low-risk investments, but the period of return will be much longer. At the same time, this is an opportunity to receive monthly passive income. The average cost of renting a house in Britain is now at the highest level – of more than £1,000, and Savills experts predict that this amount will increase by 18% by 2026.
For this type of investment, you should choose areas where many young professionals live, because it is this population group that is most often interested in renting housing.
What other types of reliable investment strategies are available?
- Student dormitories
Demand for rental accommodation near the most popular universities is also showing steady growth. In this case, in 2021, a record amount was spent on the construction of such real estate – almost 6 billion pounds.
This is another good option for first-time investors, as this type of property is relatively cheap, but can provide a steady income. Among the cons is that capital gains may not be very high. Daniel Williams, property expert at RWinvest advises focusing on major student cities such as Liverpool, Manchester, and others.
- Commercial real estate for rent
Everything related to the needs and services of the business always brings a stable profit. Commercial real estate is no exception. Commercial real estate is no exception. You can buy an area in a shopping centre or buy a part of an office space, but there are big risks of facing economic consequences. Remember at least the lockdown, when businesses had to abandon their premises. That is why Dmitry Leus, the founder of Imperium Investment, advises planning for the future and choose premises that will always be in the price. Leus gives the example of warehouses. When stores abandoned offline points, they were looking for warehouses to launch online sales. This trend will grow.
An investor should always think several steps forward, look at the situation from above, and choose an investment strategy that will provide revenue even in unexpected situations.