Oct 20, 2020
After receiving a financial windfall of some sort, the first thing many people think about is investing in some sort of property. After all, for decades buy-to-let property has consistently offered higher returns than almost any other type of investment.
If you’re thinking of investing in your first buy-to-let here are some of the types of investment properties you might want to consider.
In university towns, you will often find an odd mix of property popping up to meet the needs of the student population. Student studio flats are proving to be incredibly popular, for both first-years who don’t want to move into traditional halls of residence and those in later years who don’t want to live in flat-shares with others.
These studios are arranged in blocks of flats, but you will often be investing in just a few units. They can be a bit cheaper than traditional flats, and since they are for students there will always be a guaranteed market for them. For those looking for something a bit different for a first investment, they could be a fantastic choice.
Every now and then, an affordable block of flats might make their way to market. This can prove a sounder investment compared to buying individual units here and there. However, you need to make sure that you are properly protecting yourself as you will be sinking all of your money into one building in one area. Finding competitive landlord insurance quotes for blocks of flats is therefore going to be very important, which you can do by using a price comparison site.
In terms of renters, it all depends on how you choose to market the apartment. Again, if you are in a university town, you might choose to offer properties to students. Be wary of filling an entire block with students however, or you might end up with the local Party Central. Mixing between students and professionals might be best.
If you want to find a type of investment property that you can also enjoy, buying an overseas holiday home could be a great move. You could start with a small apartment in your favourite city – perfect for those quick breaks away. Or perhaps you’d prefer to invest in a villa in the mountains, or something just a hop and a skip away from the nearest beach?
There are so many countries that you could choose to invest in too. Classics are France, Spain and Italy, and this will never change, but there are so many others you could choose to buy a holiday home in. For example, if you want to buy a property on a Greek island, try to go to one of the smaller ones. This will get some attention from holidaymakers who want to get away from the crowds of Mykonos and Santorini but still want a slice of the Greek life, while also hopefully allowing you to support the local community in some way.
You could also choose to invest your money in a commercial unit. It might come with a client already in and operating, or it could be an empty unit that you need to market to prospective tenants. Though this is a riskier choice for investments, it can pay off in the long run.
Commercial property has the potential to earn a very healthy return if it is located in the right place and will get some decent draw from the style of business. However, an improperly placed unit might get a new business trying to move in and set up shop every half year or so. While this is alright for you collecting rent, it also isn’t great. Think carefully when investing in commercial property. If you are doing so with the intention of setting up your own business, this will require even more thought before purchase.
What’s Right for You
These four are just some of the examples of property that you could choose to invest in for the first time. What makes the right first-time property investment? There really is no easy way to answer that, as it all comes down to the individual purchaser. With so much to choose out there, your head can really be left spinning and you try to pick something good.
Think about what you want from the property. If it is something that you can make use of beyond simple monetary gain, then a holiday property or a retail unit would be best. Likewise, if you want to take advantage of your local city’s population then something to appeal to the student market might be best. Take a look at what is available on your local property markets and prepare to put that first offer in now!