If regular rental income and the potential for capital growth have interested you, then this section is for you.
Here, we will discuss the best property investment strategies in 2023, including real estate investment trusts and residential property.
We’ll also be looking at ways to finance your real estate investments and the costs involved.
Best Property Investment Strategies in 2023
While real estate investments are an excellent choice, not all strategies are equal.
Real estate is a diverse strategy with plenty of options to choose from. Investing money in property is different for everyone, with numerous potential strategies
Currently, the most popular real estate investment strategies include:
- Buy-to-Let Residential Property – The most basic form of buy-to-let, where an investor will buy a property and rent it to a tenant for a profit.
- Student Accommodation – An investor can purchase either a purpose-built student accommodation or an HMO and rent to a student tenant during the academic year.
- Off-Plan Property – Landlords can purchase residential or student real estate that isn’t yet completed for a discounted fee.
- Commercial Real Estate – Buying a property to rent to a business or corporation.
- Real Estate Investment Trusts – A more niche strategy that involves investors buying a stake in a publicly-traded company that owns property on their behalf, where the money earned by the company is distributed to shareholders.
- Buy-to-Sell – Another popular strategy, otherwise known as house flipping, is where an investor buys an undervalued property and adds renovation work or home improvements to increase its value. They will then sell the property as soon as possible for a profit.
The suitability of these strategies for your needs will highly depend on your investment goals.
To get a full breakdown of each of these strategies and a list of the pros and cons of investing, check out our guide to the best property investment strategies in the UK.
How to Invest in Property With No Money UK?
If you’re looking at real estate investments, you may be wondering how you can afford the venture.
Property prices can be high, with the current UK average sitting at £291,044 according to the latest House Price Index.
So, if you don’t have enough cash, what options do you have for investing in property?
Well, you may need to opt for a buy-to-let mortgage, which differs from more traditional mortgages you may be familiar with.
What Is a Buy-to-Let Mortgage and How Does it Work?
A buy-to-let mortgage is a mortgage that has been specifically designed for real estate investors.
They work slightly differently from a traditional mortgage, with higher interest rates and a higher deposit – usually 25%, but can range between 20-40%.
They’re also usually interest-only, which means you’ll only pay the interest each month without touching the overall debt.
Following the end of your mortgage term, you’ll need to pay off the total capital debt – typically achieved by selling your properties or re-mortgaging.
To learn more about BTL mortgages, check out our complete guide.