Investment strategies for growth in the UK property market

Whether you’re a recreational investor or an experienced industry expert, it’s easy to make a living from the seriously lucrative returns the property market offers. However, to dominate the market and compete with the fiercest investors, you must have an advantage that others do not—that is where investment strategies come into play.

If you’re a private investor, then you can expect to benefit from long-term capital appreciation simply by introducing savvy investment strategies into your approach. Similarly, if you’re just beginning to dabble in the property investment market, then using certain investment strategies will give you the opportunity to enjoy a steady rental income and reap the financial benefits for years to come.

Choosing the right location

When investing in commercial property, location is key and choosing the right location could be the difference between your success and your failure as an investor. Choosing a well-populated area isn’t enough to satisfy housing and rental demands anymore, and other factors such as transport links, employment markets, and further education facilities must be taken into account when choosing where to invest.

From an investor’s point of view, you must also consider annual house price growth and return on investment whilst making an effort to understand the local market as a whole, without forgetting about market trends nationwide.

Value-added properties

Another investment strategy that can be introduced in order to boost both capital and buy-to-let returns is ‘property flipping’. This refers to the process of refurbishing or redeveloping a dilapidated property and transforming it solely for buy-to-let or resale purposes that will generate profit. There are a number of discounted properties that do not demand the high costs of the market, and investors can take advantage of these prices by expanding their portfolio, securing capital growth returns and injecting liquidity into local property markets.

Don’t put all your eggs in one basket

Whilst some investors prefer to focus purely on one element of the property market, diversifying your portfolio and expanding your reach is a great way of benefiting from a range of specific advantages and protecting yourself from a potentially volatile market.

Diversifying your portfolio gives you the opportunity to reap the benefits across all sectors of the market—for example, purpose-built student accommodation offers unprecedented returns in areas with a significant student population, whilst HMOs are ideal for young people who can’t afford the high entry costs of the property market.

You don’t just have to focus your portfolio around houses and flats, you can diversify even more with business premises in the city center that young business professionals and corporations are bound to take advantage of.

Should one sector of the property market crash, you can have peace of mind knowing that you have other investments in place that continue to prosper and support you financially.

By introducing savvy strategies you can compete with investors targeting the same market, and subsequently boost your sales and buy-to-let returns. Choosing the right location, ‘flipping’ properties and diversifying your portfolio are just some great examples of strategies that both professional and recreational investors can take advantage of.

—
DISCLAIMER: This article expresses my own ideas and opinions. Any information I have shared are from sources that I believe to be reliable and accurate. I did not receive any financial compensation for writing this post, nor do I own any shares in any company I’ve mentioned. I encourage any reader to do their own diligent research first before making any investment decisions.