Whether you’ve come across some money or you’re unsure what to do with your savings, the best advice any professional financial advisor can give you is to invest in the property market. Why so? Because everybody needs a roof above their head, regardless of the political or economic situation in the world. Additionally, unlike other investment strategies that tend to be defined by a series of complex numbers – whether you’ve opted for stock exchange investments or cryptocurrency –, the property market offers a significant advantage. Nowhere else can you find physical, tangible assets that you can touch and see. For a newcomer to the investment world, the responsibility and challenges of the property market are easier to comprehend. Besides, you won’t find any other investment portfolio that guarantees a safe return, regardless of how much you’ve spent on it.
Small expenses for big gains
One of the most satisfying facts about property investments is that you don’t need to own a second property to start earning your income. Indeed, the rent-a-room scheme lets your welcome a lodger in your spare bedroom. Even with a limited budget, you can create a cosy room with a quick paint job and clean furniture. Additionally, there is a false sense of economy as you should invest in quality furniture and decorative equipment, but you are likely to make up for the expenses within the first couple of months. Besides, you don’t even need to be a homeowner to benefit from the scheme. With the permission of your landlord, you can sublet a bedroom.
Why commercial buy-to-lets are more profitable
If you are in a position where you can afford to buy a second property as a buy-to-let, you should focus your attention on commercial property rentals which offer the advantage of long-term leases. In a busy urban area, businesses sign on average leasing contracts for a duration of 10 years, which, for a landlord, is a promise of long-term and regular income. It is an excellent idea to target locations in which innovative and creative businesses are in demand. Keep your eyes open for tech start up launches and escape room openings, as these are the kind of businesses that tend to have a positive snowflake effect on the local economy. They attract other companies and therefore create demand for premises.
Is a residential rental a good idea?
The typical British homeowner is over 30 when buying their first home. As a consequence, residential rentals remain a profitable investment in busy towns, where the house value remains high. However, Brexit is affecting the price of renting, forcing landlords to increase their rents and making it more challenging to find long-term tenants. Indeed, long-term residential rentals may become problematic for landlords. However, short-term rentals as holiday homes can offer a valuable alternative. Indeed, holiday homes are not only a worthy investment, but they also run with high rents. Additionally, nowhere else are you going to find tenants willing to pay up to £1,000 to spend a few days in a remote location with no facilities or even electrical coverage.
For a robust investment portfolio, you need to consider the best way to make the most of the property market. Renting out a room in your own home, a shop on the high street, or even a remote cabin in a rural area has never been a more profitable business.
This is a collaborative post.