4. Research the Different Types of Investments in Property
So now that you’ve done your research on investment locations, you should think some more about the type of investment you want to make. There are two popular types of property investment opportunities in the UK – residential and student buy to let. Both these property types come with a lot of potential, but the route you choose to take may depend on your personal investment goals.
Benefits of Student Investments
If you want to find high return investment opportunities, student accommodation is a lucrative route to take with attractive rental yields available for properties in this sector. Student properties are one of the best asset classes for those with a lower budget as these type of properties are usually more affordable. For instance, take the Liverpool student opportunity – Poets Place. This investment is priced from just £78,950, and comes with yields of 8%, proving that you don’t need to spend over your budget to make a lucrative investment.
When it comes to investments in UK cities like Liverpool, student property is highly in demand due to the large population of students living in the area. This has meant that while property prices for student accommodation may be low, the cost of rent is high, resulting in some attractive rental returns. If your main goal is to attract a lot of demand and generate high returns while keeping costs low, you should definitely explore available student property investment opportunities in the UK.
Benefits of Residential Investments
When it comes to real estate investing, residential properties are equally as beneficial as student investments. The main difference between the two is that the price of residential properties is usually a little higher than student flats. When you look to invest in an affordable property hot spot, however, this is not a major difference, and you can still find some very good investment opportunities with low price tags.
The main appeal of residential property investments is the fact that you can rent these properties out to a wider range of tenants. Unlike student property, residential properties are usually open to young professionals, families, retiree’s, or even students who don’t want to live in student accommodation. The most common tenant for this type of property, however, is the young professional. With the number of young professionals rising massively, especially in Northern cities such as Manchester, the demand for residential properties is at an all-time high. By choosing investment opportunities in the form of city centre residential apartments, you can make high rental returns and benefit from capital growth in the future.