Dependent on your time, knowledge, finance and often location will allow you to identify your preferred strategy. A common strategy for new investors is to begin with buy to lets before moving onto more complex strategies as their knowledge develops.
There are so many strategies to cover, we have just touched on a few but for a more in depth chat we would be happy to arrange. One key question will be whether to invest in your personal name or a company due to the string of tax changes over recent years.
Buy to Let
Often referred to as vanilla investing, this would be the purchase of a property and having one set of tenants within the respective property. It’s a solid foundation with constant demand for good rental properties, however the tax laws have changed recently resulting in profits being lower.
HMO’s (House of Multiple Occupation)
A popular choice in which a property is converted into several bedrooms (often 4 – 8) along with a number of en-suite bathrooms yet a shared kitchen and communal space. The quality of these has been improving in recent years and is ideal for young professionals and those in the lower salary brackets who can no longer afford to live on their own.
From an investment perspective, they are a little more hands on and a good knowledge base and refurbishment work is often required. However, its worth it with profits in the North be in the region of £700 – £1200 per month.
Commercial to Residential Conversions
From reviewing the government initiatives and planning changes, the commercial to residential conversions are going to be popular in the coming years. With less planning restrictions, better price per square metre and higher valuations for commercial premises when compared to traditional residential it’s understandable.
Having said this, finance involved is usually a little more so ensure you are well educated before delving into this type of investment as simple mistakes can cost you thousands.
Should you wish for any further information on further investment strategies or opportunities, please feel free to contact us on +44 (0) 161 282 5558 or myself personally at andrew.white@dmrelocation.com
