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What Are the Different Property Investment Strategies in the UK? – a Guide to 10 Property Investment Strategies

Want to learn about the different property investment strategies available to those in the UK?

From rental property strategies to buy to sell investments, here are 10 of the most popular options for anyone considering a property investment strategy in the UK.

Property Investment Strategy

Every property investor knows the importance of creating solid property investment strategies.  

Property investment strategies for UK investors are like a business plan – you need to accurately plan for your venture and do as much research as possible into your chosen field before you get started. 

If you’re thinking about investing in property in the UK but you’re unsure where to begin when it comes to your property investment strategy, this helpful guide is perfect for you.  

In this guide, we list 10 different property investment strategies in the UK, from residential buy to let to HMO investments. 

We’ll help you work out which property investment strategy is right for you and which you should avoid, and offer tips on how to make your property venture as successful as possible.   

If this sounds helpful to you, keep reading our guide to 10 of the different property investment strategies UK investors should consider. 

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Contents

10 Different Property Investment Strategies
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10 Different Property Investment Strategies



How to Choose a Property Investment Strategy
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How to Choose a Property Investment Strategy



How to Make Your Property Investment Strategy Successful
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How to Make Your Property Investment Strategy Successful



Build Your Property Investment Strategy with RWinvest
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Build Your Property Investment Strategy with RWinvest



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What Is a Property Investment Strategy? 

Before we get started with exploring different investment strategies, you need to understand exactly what a property investment strategy is.   

In a nutshell, a property investment strategy is all about the way you will invest and the plan you will create. For instance, if you choose a buy to let investment, you will purchase a property and rent it out to tenants to make rental income.  

Then, you may choose to sell the property later in life and benefit from capital gains if the property has increased in value. 

What Are the Different Types of Property Investment Strategy?

To get started with a property venture, you need to know about the different property investment strategies available to you.  

Below, we’ve compiled a list of 10 property investment strategies that UK investors should know about, including the pros and cons of each strategy. 

When it comes to property investment, buy to let is the most popular type of investment strategy in the UK.  

Residential buy to let is essentially the more ‘traditional’ investment property strategy for buy to let investors.  

The term residential means that the property is intended to be lived in by a tenant, making residential buy to let a rental property investment strategy.  

Unlike student buy to let, many different tenants could rent out a residential property, ranging from young professionals to retirees.  

However, a lot of the time, young professionals are likely to be the main tenant group that most people will attract when focusing on a residential buy to let property investment strategy.  

This is because younger people are more drawn to renting, whether through choice or lack of financial ability to purchase a home of their own. 

Pros 

  • One of the least risky property investment strategies out there. 
  • Easy to get started without expert knowledge.
  • Allows investors to make consistent rental income, with high rental yields available in certain UK areas. 
  • Generates two types of returns through a combination of rental returns and capital growth returns when the investor sells the property. 
  • Less time-consuming than some other rental property investment strategies, with the option to hire a rental management company for a hands-off investment. 

Cons 

  • Residential buy to let is considered a long-term strategy, so not the best choice for those looking to quickly make significant short-term returns. 
  • Potential void periods if investing in an area without high rental demand. 

Student buy to let is a similar property investment strategy to residential buy to let. The only real difference is the property type you’ll invest in and the tenants you will rent to.  

The UK student market is currently booming, with many students seeking stylish and well-located accommodation to live in during their time at university.   

Because student ideals are changing, with fewer and fewer students accepting the shared student housing of the past, there’s a lot of demand for a more high-quality style of accommodation.  

This is where investing in student buy to let developments comes in. 

Pros 

  • A good option for first-time investors due to low property prices and high yields. 
  • Offers a combination of rental income and capital appreciation for maximum returns. 
  • High and consistent rental demand due to booming UK student property market. 
  • Hands-off investment options make student buy to let easy and hassle-free. 

Cons 

  • May not see as high capital growth returns as you do with residential buy to let. 
  • Limited to one tenant group. 

An HMO is a house of multiple occupancy. Investing in this type of property is another of the most common investing strategies in the UK.  

HMO investment falls under a buy to let investment as investors will purchase a house of multiple occupancy and rent out each room within the property.  

Certain types of student accommodation fall under the category of an HMO, with shared student houses being an alternative to purpose-built student accommodation in the form of apartments. 

Pros 

  • Offers the chance to generate income from multiple different tenants at once, resulting in high yields. 
  • If one tenant stops paying their rent, you’ll still have rental income from the other tenants to fall back on. 

Cons 

  • This type of investment strategy comes with more complex tax rules, planning requirements, and legislation requirements.
  • Difficult to obtain a buy to let mortgage for HMO properties. 
  • More management is involved, which makes this property investment strategy more time-consuming. 
  • As the demand for more luxury private accommodation increases, people may be less inclined to rent shared properties. 

Holiday lets are another type of buy to let property investment strategy that many UK investors opt for.  

Like residential or student buy to let, investing in a holiday let involves purchasing a property – whether a house or apartment – which will then be rented out for income.  

These types of properties are let out on a short-term basis as they’re rented by those seeking somewhere to stay while on holiday.  

These properties will typically be listed on websites like Airbnb and other platforms used to showcase holiday rentals. 

Pros 

  • Holiday lets allow investors to make attractive rental income depending on the quality and popularity of the property. 
  • Better tax benefits compared to traditional buy to let. 

Cons 

  • Finding a buy to let mortgage can be tricky. 
  • A lot of work is involved in maintaining and marketing the property. 
  • The property could go empty for long periods, especially if it’s based in an area that sees more seasonal demand, such as a seaside town. 

Along with the more traditional property investment strategies, there are also more niche investment strategies to consider.  

One example of a more niche strategy is hotel room investments. Here, an investor purchases a room within a hotel and generates income from guest stays.  

Instead of having a tenant, you gain income from those travelling for business or a holiday.  

When investing in property, UK investors who want a completely hands-off investment may favor this property investment strategy.  

However, there are some disadvantages of this investment strategy to keep in mind.

Pros 

  • It can be possible to make large returns if the hotel is popular and generates a lot of demand. 
  • A hands-off strategy with no need to deal with tenants.

Cons 

  • Because a hotel is essentially a business, you’re at risk of the hotel failing, damaging your investment. 
  • If the hotel doesn’t see a lot of demand, you will lose income due to void periods.
  • The hotel’s reputation is out of your control, and bad customer reviews could impact demand. 

1. Residential Buy to Let

When it comes to property investment, buy to let is the most popular type of investment strategy in the UK.  

Residential buy to let is essentially the more ‘traditional’ investment property strategy for buy to let investors.  

The term residential means that the property is intended to be lived in by a tenant, making residential buy to let a rental property investment strategy.  

Unlike student buy to let, many different tenants could rent out a residential property, ranging from young professionals to retirees.  

However, a lot of the time, young professionals are likely to be the main tenant group that most people will attract when focusing on a residential buy to let property investment strategy.  

This is because younger people are more drawn to renting, whether through choice or lack of financial ability to purchase a home of their own. 

Pros 

  • One of the least risky property investment strategies out there. 
  • Easy to get started without expert knowledge.
  • Allows investors to make consistent rental income, with high rental yields available in certain UK areas. 
  • Generates two types of returns through a combination of rental returns and capital growth returns when the investor sells the property. 
  • Less time-consuming than some other rental property investment strategies, with the option to hire a rental management company for a hands-off investment. 

Cons 

  • Residential buy to let is considered a long-term strategy, so not the best choice for those looking to quickly make significant short-term returns. 
  • Potential void periods if investing in an area without high rental demand. 

2. Student Buy to Let

Student buy to let is a similar property investment strategy to residential buy to let. The only real difference is the property type you’ll invest in and the tenants you will rent to.  

The UK student market is currently booming, with many students seeking stylish and well-located accommodation to live in during their time at university.   

Because student ideals are changing, with fewer and fewer students accepting the shared student housing of the past, there’s a lot of demand for a more high-quality style of accommodation.  

This is where investing in student buy to let developments comes in. 

Pros 

  • A good option for first-time investors due to low property prices and high yields. 
  • Offers a combination of rental income and capital appreciation for maximum returns. 
  • High and consistent rental demand due to booming UK student property market. 
  • Hands-off investment options make student buy to let easy and hassle-free. 

Cons 

  • May not see as high capital growth returns as you do with residential buy to let. 
  • Limited to one tenant group. 

3. HMOs

An HMO is a house of multiple occupancy. Investing in this type of property is another of the most common investing strategies in the UK.  

HMO investment falls under a buy to let investment as investors will purchase a house of multiple occupancy and rent out each room within the property.  

Certain types of student accommodation fall under the category of an HMO, with shared student houses being an alternative to purpose-built student accommodation in the form of apartments. 

Pros 

  • Offers the chance to generate income from multiple different tenants at once, resulting in high yields. 
  • If one tenant stops paying their rent, you’ll still have rental income from the other tenants to fall back on. 

Cons 

  • This type of investment strategy comes with more complex tax rules, planning requirements, and legislation requirements.
  • Difficult to obtain a buy to let mortgage for HMO properties. 
  • More management is involved, which makes this property investment strategy more time-consuming. 
  • As the demand for more luxury private accommodation increases, people may be less inclined to rent shared properties. 

4. Holiday Lets

Holiday lets are another type of buy to let property investment strategy that many UK investors opt for.  

Like residential or student buy to let, investing in a holiday let involves purchasing a property – whether a house or apartment – which will then be rented out for income.  

These types of properties are let out on a short-term basis as they’re rented by those seeking somewhere to stay while on holiday.  

These properties will typically be listed on websites like Airbnb and other platforms used to showcase holiday rentals. 

Pros 

  • Holiday lets allow investors to make attractive rental income depending on the quality and popularity of the property. 
  • Better tax benefits compared to traditional buy to let. 

Cons 

  • Finding a buy to let mortgage can be tricky. 
  • A lot of work is involved in maintaining and marketing the property. 
  • The property could go empty for long periods, especially if it’s based in an area that sees more seasonal demand, such as a seaside town. 

5. Hotel Lets

Along with the more traditional property investment strategies, there are also more niche investment strategies to consider.  

One example of a more niche strategy is hotel room investments. Here, an investor purchases a room within a hotel and generates income from guest stays.  

Instead of having a tenant, you gain income from those travelling for business or a holiday.  

When investing in property, UK investors who want a completely hands-off investment may favor this property investment strategy.  

However, there are some disadvantages of this investment strategy to keep in mind.

Pros 

  • It can be possible to make large returns if the hotel is popular and generates a lot of demand. 
  • A hands-off strategy with no need to deal with tenants.

Cons 

  • Because a hotel is essentially a business, you’re at risk of the hotel failing, damaging your investment. 
  • If the hotel doesn’t see a lot of demand, you will lose income due to void periods.
  • The hotel’s reputation is out of your control, and bad customer reviews could impact demand. 

Build a Lucrative Property Investment Strategy in the UK – Explore Current Buy to Let Opportunities

Another strategy that involves buy to let is commercial property investment.  

With this, the investor purchases a unit in a commercial building, such as an office block, and rents it out to companies and business owners.  

These kinds of properties tend to be offices but can also be retail or industrial spaces.  

Pros 

  • Lease lengths for commercial buy to let tend to be longer than residential buy to let property investment strategies. 
  • There are certain tax advantages involved. 

Cons 

  • Finding the right tenant can take a long time, meaning more extended void periods in between tenants. 
  • Buy to let mortgages can be more costly compared to residential buy to let.
  • In times of recession or economic uncertainty, the commercial property market tends to be hit hard. 

Another of the most popular property investment strategies in the UK is buy to sell.  

Buy to sell is when an investor purchases a property that needs refurbishment, whether it’s run down and needs renovating completely or simply features outdated designs and could do with an update.  

The buyer will then make any necessary renovations to the property and sell it when the market is performing highly. This is often also referred to as flipping property. 

Unlike a buy to let strategy, this kind of property investment strategy doesn’t involve renting the property out to tenants.  

This means that the only return on investment with buy to sell strategies comes thanks to a growth in the property’s value. 

Pros 

  • Potential to make large rental returns if you can add value to the property with renovations and capital growth. 
  • Don’t need to deal with tenants and rental property management duties. 

Cons 

  • Buy to sell is a very hands-on method of property investing, requiring time and expertise to succeed. 
  • Could lose money if not done right. 
  • It can be costly depending on the level of renovation needed to increase property value.

Another property investment strategy that is less common is converting a commercial property into a residential property.  

Thanks to new planning laws, converting a commercial property into a residential buy to let property is a lot easier than it has been in the past.  

This type of property investment strategy is pretty self-explanatory. The property investor would take the commercial property they already own and renovate it to become one or more residential flats. 

Pros 

  • If a commercial buy to let property isn’t performing well due to current market conditions, investors can convert it to cater to a more in-demand tenant market. 

Cons 

  • Planning permission is required, which can be costly. 
  • Expert knowledge is required for this strategy to be a success.
  • Converting the property can be costly and time-consuming. 

Another option that some property investors choose is to develop a completely new property themselves with a property development project.  

This type of property investment strategy is a far cry from buy to let property as it requires a lot of time, knowledge, and dedication.  

Once the property has been built, investors can either list it as a buy to let property and earn income from renters or sell it for a short-term profit. 

Pros 

  • Gives total freedom of how the property is going to look and the features it will have.

Cons 

  • Very time-consuming and requires expert knowledge and patience.
  • It can be very costly with limited returns depending on the steps taken.

Another more niche strategy, rent to rent property investment is when an investor rents a property from a landlord and then rents it out to a tenant.  

The investor who rents out the property from the landlord has the responsibility of finding tenants, maintaining the property, and paying property bills, while the regular rental costs that the investor is required to pay will usually be discounted to allow them to make a profit. 

Pros 

  • Quick to get started with and begin generating income.
  • Doesn’trequire the purchase of a property.

Cons  

  • The number of landlords who will agree to this arrangement is limited.
  • Limited returns compared to other property investment strategies.
  • No ability to make returns through capital growth.

6. Commercial Property Buy to Let

Another strategy that involves buy to let is commercial property investment.  

With this, the investor purchases a unit in a commercial building, such as an office block, and rents it out to companies and business owners.  

These kinds of properties tend to be offices but can also be retail or industrial spaces.  

Pros 

  • Lease lengths for commercial buy to let tend to be longer than residential buy to let property investment strategies. 
  • There are certain tax advantages involved. 

Cons 

  • Finding the right tenant can take a long time, meaning more extended void periods in between tenants. 
  • Buy to let mortgages can be more costly compared to residential buy to let.
  • In times of recession or economic uncertainty, the commercial property market tends to be hit hard. 

7. Buy to Sell

Another of the most popular property investment strategies in the UK is buy to sell.  

Buy to sell is when an investor purchases a property that needs refurbishment, whether it’s run down and needs renovating completely or simply features outdated designs and could do with an update.  

The buyer will then make any necessary renovations to the property and sell it when the market is performing highly. This is often also referred to as flipping property. 

Unlike a buy to let strategy, this kind of property investment strategy doesn’t involve renting the property out to tenants.  

This means that the only return on investment with buy to sell strategies comes thanks to a growth in the property’s value. 

Pros 

  • Potential to make large rental returns if you can add value to the property with renovations and capital growth. 
  • Don’t need to deal with tenants and rental property management duties. 

Cons 

  • Buy to sell is a very hands-on method of property investing, requiring time and expertise to succeed. 
  • Could lose money if not done right. 
  • It can be costly depending on the level of renovation needed to increase property value.

8. Commercial to Residential Conversions

Another property investment strategy that is less common is converting a commercial property into a residential property.  

Thanks to new planning laws, converting a commercial property into a residential buy to let property is a lot easier than it has been in the past.  

This type of property investment strategy is pretty self-explanatory. The property investor would take the commercial property they already own and renovate it to become one or more residential flats. 

Pros 

  • If a commercial buy to let property isn’t performing well due to current market conditions, investors can convert it to cater to a more in-demand tenant market. 

Cons 

  • Planning permission is required, which can be costly. 
  • Expert knowledge is required for this strategy to be a success.
  • Converting the property can be costly and time-consuming. 

9. Property Development

Another option that some property investors choose is to develop a completely new property themselves with a property development project.  

This type of property investment strategy is a far cry from buy to let property as it requires a lot of time, knowledge, and dedication.  

Once the property has been built, investors can either list it as a buy to let property and earn income from renters or sell it for a short-term profit. 

Pros 

  • Gives total freedom of how the property is going to look and the features it will have.

Cons 

  • Very time-consuming and requires expert knowledge and patience.
  • It can be very costly with limited returns depending on the steps taken.

10. Rent to Rent

Another more niche strategy, rent to rent property investment is when an investor rents a property from a landlord and then rents it out to a tenant.  

The investor who rents out the property from the landlord has the responsibility of finding tenants, maintaining the property, and paying property bills, while the regular rental costs that the investor is required to pay will usually be discounted to allow them to make a profit. 

Pros 

  • Quick to get started with and begin generating income.
  • Doesn’trequire the purchase of a property.

Cons  

  • The number of landlords who will agree to this arrangement is limited.
  • Limited returns compared to other property investment strategies.
  • No ability to make returns through capital growth.

How Do I Decide Which Strategy Is Best for Me?

How Do I Decide Which Strategy Is Best for Me? How Do I Decide Which Strategy Is Best for Me?

To work out which of these investment strategies is right for you, you need to think about what you want to get out of your property investment project. Ask yourself the following questions when contemplating a property investment strategy.  

  • Are you focused on making regular returns from rental income, a large sum of money from a property sale, or both?
  • How much risk are you prepared to accept with your investment? 
  • Is the property investment strategy you’re interested in capable of generating a high influx of demand? 

When analysing the different types of property investment strategies UK investors can choose from, buy to let strategies tend to be the most promising.  

This is because buy to let strategies, most notably residential and student buy to let, can offer two types of return on investment – rental returns and capital growth.  

However, if you’re more focused on making a lump sum of money rather than a long-term cash flow, then property investment strategies like buy to sell may be better suited to your needs. 

You also need to factor risk into your decision-making process when working out what type of strategy to pursue.  

As with any investment, all property investment types come with a degree of risk. However, certain property investment strategies are riskier than others.  

A property development strategy where you develop a new build property, for instance, is considered riskier than investing in an off-plan or new build residential or student buy to let property.  

This is because traditional buy to let strategies require less expert knowledge to succeed. The UK housing market is also currently thriving, which means you don’t have to worry about house prices or rental price drops.  

Property Investment Strategies and Demand Property Investment Strategies and Demand

Lastly, you also need to factor demand into your overall decision. Without a good level of demand, your property could be hit by void periods where you lose income.  

There is a lot of demand for high-quality rental accommodation in the UK, thanks to an influx of young professional and student renters.  

By investing in student or residential buy to let, you’re able to benefit from this demand now and in the future. 

To fully understand which property investment strategy is right for you, it may be a good idea to speak to a financial advisor who can provide clarity on what each investment strategy involves. 

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North West's First Eco-Development

Liverpool Prices from £74,950

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300m Away From New £1bn Royal Hospital

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Off Market Manchester Apartments

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Manchester Prices from £219,112

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What Is the Best Type of Property for an Investment in Buy to Let? 

If you think that buy to let is the best property investment strategy, then it’s essential to research the different options available to you. 

Typically speaking, the best type of property to invest in for a buy to let property is a residential or student flat. Residential and student buy to let are the most popular rental property investment strategies..  

This is because demand levels for these property types are high, and high rental yields and strong capital growth prospects make for a lucrative venture. 

While alternative buy to let property investment strategies such as HMO investments can offer lucrative returns, they also come with many disadvantages compared to residential and student buy to let.  

Right now, people are placing a lot of focus on finding the perfect place to live, with certain qualities such as privacy becoming more critical due to the Covid-19 pandemic. 

With more people now working from home, properties with qualities like high-speed internet are also becoming more in-demand, which is why luxury off-plan and new-build apartments like Merchant’s Wharf in Manchester offer such a desirable investment opportunity.  

Properties with areas for working from home are also becoming more popular, with new developments like the Summit Liverpool offering dedicated remote working space for residents to use. 

Since house prices in the UK are rising rapidly, with an expected national growth of 21.1% by 2025, residential and student buy to let investments allow investors to make huge returns both now and in the years to come. 

How Can I Make My Property Investment Strategy a Success?

Once you’ve decided what kind of property investment strategy you’re going to pursue, you need to follow certain steps to make your real estate venture as successful as possible.  

Here are four property investment tips to keep in mind for building effective UK investing strategies. 

Nobody should ever enter an investment without knowing what to expect. When it comes to property investment strategies, this means learning about all of the fees and payments involved with investing in property. 

While you have the cost of the property itself to consider, you also need to be prepared for the following expenses: 

  • Property taxes like stamp duty tax. 
  • Property management fees. 
  • Rental property insurance. 
  • Ground rent (if you purchase a leasehold property). 
  • Property maintenance costs. 
  • Other applicable fees. 

This is why so many investors believe that setting a budget is such an essential part of every property investment strategy.  

Whether you have a budget of £50k or £500k, you’re still perfectly able to find a lucrative investment property. You just need to be prepared for the costs and fees involved so that you can budget accordingly.  

Every soon-to-be investor needs to understand the basics of an effective property investment strategy.  

If it’s a buy to let strategy you opt for, you need to know about two key elements of an effective strategy when investing in property in the UK – rental yields and capital growth.  

But as well as understanding these terms and knowing how to identify the best opportunities, you also need to realise that true property investment success comes from the right combination of the two. 

When getting started with buy to let and exploring property investment options, it can be easy to get sucked in by impressive rental yields and low prices.  

While yields are definitely a big element of all good property investment strategies, you could be limiting your chances of success by focusing solely on this figure. 

An investor who buys a residential flat in an affordable area of a city, for instance, could reel in some impressive yields if the property price was low and levels of demand are high.  

This is all well and good in terms of rental returns, but if the area the flat is based in is run-down with no signs of growth or regeneration, you’re missing out on your potential for capital growth and a rise in property values.  

By the time you sell the property, you could find that the market value has seen little change or may have even dropped.  

Every property investment strategy in the UK should factor in capital growth and yields when selecting an investment type.  

Without doing this, you won’t benefit from the ability to make money from both rental returns and an increase in value when you choose to sell. 

Successful property investors will look at every way to make a return on investment to get the most out of their UK property investments with regular returns and capital gains.  

This way, investors using a buy to let mortgage to pay for their property can make enough to cover the repayments along with having the option to pay off the remainder of the property when they come to sell. 

Once you’ve chosen a property investment strategy, you’ll have a good idea of the type of tenant you should rent your property out to.  

Understanding your tenant profile is so essential before you begin your buy to let journey. With property investment, UK cities attract tenant demand from a range of different renters.  

Before you put your property on the market, you should think about the type of tenant that’s likely to be interested in the investment. This will allow you to tailor the design and amenities to them. 

For instance, you might view student property as one of the best types of property for a property investment strategy in the UK, in which case the obvious resident will be student tenants.  

To give yourself the best chance at success, however, you should pay attention to unique details that could help your property stand out to this tenant. 

If you researched the student market in the UK, you’d find that students favour qualities like proximity to their university campus, high-speed internet, and modern designs and furnishings.  

Other luxury amenities like an onsite gym or round-the-clock security and maintenance are also desirable.  

Knowing this information about your target tenant can take your property investment strategy to the next level and offer attractive qualities that your competitors may be lacking. 

Before you even start your property investment strategy, you should already have an exit plan in mind.   

Your exit strategy is an integral part of your journey when investing in property in the UK. Without it, you could be limiting your investment potential. So how do you create an exit strategy?  

Think about how long you imagine investing for, how you plan to leave your investment, and who your ideal buyer would be.  

For example, you may wish to invest for the longest period possible so that you can generate many years worth of rental returns.   

Then, when the market is booming, you’ll think about selling the property to benefit from capital appreciation. 

Alternatively, you may wish to hold onto the property and pass it on to a loved one rather than using any income from the sale towards your retirement.  

Be sure to spend time thinking about this, especially if you intend to build a wider property portfolio.  

It’s a good idea to know when and how you expect to exit each investment – whether this will mean selling your properties all at once or gradually. 

Know What to Expect

Nobody should ever enter an investment without knowing what to expect. When it comes to property investment strategies, this means learning about all of the fees and payments involved with investing in property. 

While you have the cost of the property itself to consider, you also need to be prepared for the following expenses: 

  • Property taxes like stamp duty tax. 
  • Property management fees. 
  • Rental property insurance. 
  • Ground rent (if you purchase a leasehold property). 
  • Property maintenance costs. 
  • Other applicable fees. 

This is why so many investors believe that setting a budget is such an essential part of every property investment strategy.  

Whether you have a budget of £50k or £500k, you’re still perfectly able to find a lucrative investment property. You just need to be prepared for the costs and fees involved so that you can budget accordingly.  

Find the Perfect Mix of Yields and Growth 

Every soon-to-be investor needs to understand the basics of an effective property investment strategy.  

If it’s a buy to let strategy you opt for, you need to know about two key elements of an effective strategy when investing in property in the UK – rental yields and capital growth.  

But as well as understanding these terms and knowing how to identify the best opportunities, you also need to realise that true property investment success comes from the right combination of the two. 

When getting started with buy to let and exploring property investment options, it can be easy to get sucked in by impressive rental yields and low prices.  

While yields are definitely a big element of all good property investment strategies, you could be limiting your chances of success by focusing solely on this figure. 

An investor who buys a residential flat in an affordable area of a city, for instance, could reel in some impressive yields if the property price was low and levels of demand are high.  

This is all well and good in terms of rental returns, but if the area the flat is based in is run-down with no signs of growth or regeneration, you’re missing out on your potential for capital growth and a rise in property values.  

By the time you sell the property, you could find that the market value has seen little change or may have even dropped.  

Every property investment strategy in the UK should factor in capital growth and yields when selecting an investment type.  

Without doing this, you won’t benefit from the ability to make money from both rental returns and an increase in value when you choose to sell. 

Successful property investors will look at every way to make a return on investment to get the most out of their UK property investments with regular returns and capital gains.  

This way, investors using a buy to let mortgage to pay for their property can make enough to cover the repayments along with having the option to pay off the remainder of the property when they come to sell. 

Think About Your Tenant

Once you’ve chosen a property investment strategy, you’ll have a good idea of the type of tenant you should rent your property out to.  

Understanding your tenant profile is so essential before you begin your buy to let journey. With property investment, UK cities attract tenant demand from a range of different renters.  

Before you put your property on the market, you should think about the type of tenant that’s likely to be interested in the investment. This will allow you to tailor the design and amenities to them. 

For instance, you might view student property as one of the best types of property for a property investment strategy in the UK, in which case the obvious resident will be student tenants.  

To give yourself the best chance at success, however, you should pay attention to unique details that could help your property stand out to this tenant. 

If you researched the student market in the UK, you’d find that students favour qualities like proximity to their university campus, high-speed internet, and modern designs and furnishings.  

Other luxury amenities like an onsite gym or round-the-clock security and maintenance are also desirable.  

Knowing this information about your target tenant can take your property investment strategy to the next level and offer attractive qualities that your competitors may be lacking. 

Plan an Exit Strategy 

Before you even start your property investment strategy, you should already have an exit plan in mind.   

Your exit strategy is an integral part of your journey when investing in property in the UK. Without it, you could be limiting your investment potential. So how do you create an exit strategy?  

Think about how long you imagine investing for, how you plan to leave your investment, and who your ideal buyer would be.  

For example, you may wish to invest for the longest period possible so that you can generate many years worth of rental returns.   

Then, when the market is booming, you’ll think about selling the property to benefit from capital appreciation. 

Alternatively, you may wish to hold onto the property and pass it on to a loved one rather than using any income from the sale towards your retirement.  

Be sure to spend time thinking about this, especially if you intend to build a wider property portfolio.  

It’s a good idea to know when and how you expect to exit each investment – whether this will mean selling your properties all at once or gradually. 

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Plan the Perfect Property Investment Strategy With RWinvest

If you’re ready to buy an investment property and you’re set on a rental property investment strategy, make sure to explore our investment opportunities.  

We’re a UK property investment company who specialise in residential and student buy to let properties in the North West, offering some great buy to let options with assured rental yields of up to 8% and affordable prices.  

If you want to get started in property or have any questions, please contact us today. One of our property experts can then provide information on our available properties to help you build your perfect investment strategy. 

Click the chat icon on the right-hand side of this page to start a quick conversation with one of our property consultants. Or, alternatively, request a free call back by clicking the phone icon on the left-hand side of the page.  

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