6 Tips For Choosing The Right Property To Invest In

6 TIPS FOR CHOOSING THE RIGHT PROPERTY TO INVEST IN

Written by Chantelle Roberts 

So, you’ve clicked on this blog because you are interested in investing in property, but the palaver of making the right decisions for you, can be confusing at the best of times. 

 

You want to get the most out of your money, but have you carefully considered whether you want to own commercial or residential properties? Have you decided who your ideal tenant will be? 

 

With such an extensive range of different property investments out there; understanding the local area and what you require out of the property, is key to choosing the right option for you. After all, investing in property is all about gaining the maximum profit you can from the investment choices you make. 

 

We aim to help you choose the right property and the right tenant for that property, for detailed guides, courses and mentorship from our resident property expert, visit us today. 

 

Different types of property investments

 

Property is needed for many possibilities, tenants may be looking for a suitable commercial property to conduct business, looking for a family home to live in, a first-time mover seeking independence, even agriculture and preservation of land is a worthy cause in property investing and an investment property to rent out to have a regular cash flow. 

 

Long story short, there is a category of property suited for the needs of every user, your job is to decide what type of property to buy and in doing so, you can tailor your search for a suitable tenant.

 

To help narrow down your options, we will be focusing mainly on residential properties:

 

Residential properties (properties developed for the purpose of providing adequate housing)

 

Single family homes, always a popular option amongst young couples looking to start/grow a family. These homes contain only one residence and can be detached or attached homes.

Duplex, in the UK this refers to an apartment that includes two floors of accommodation, joined by an internal staircase. 


Flat/apartment buildings, or multi-family units, a great option if you have a large amount of capital. You will be providing residence for many people in the area, these buildings are usually located in urban areas. Depending on your capital, adding amenities such as gym, swimming pool, green (play areas) tacks on extra value to the property and allows you to charge a premium. 

Undeveloped land, depending on your intentions buying undeveloped land could be a great option, large developers may look to create High-rise buildings, but another option could be to preserve or work with the land. Pockets of land in heavily built-up urban areas are very valuable.

Commonhold properties/condos, relates to a building structure that is broken down into several individual units of which you own, the common areas are jointly owned. 

Conversion properties, these are buildings that had a separate use that can be converted to residential properties. For example, a church, bank, warehouse, barn. It may be a financially viable decision to convert these types of properties and then produce rental income from them. The building having an existing structure to rebuild/convert is an attractive option for many investors. 

With the recent change in legislation (The use classes amendment) (The GDPO amendment), commercial buildings have more flexibility to be used for a supply of new homes.  

 

* Research planning permissions in your area and find out whether the property is a listed building, this will present some restrictions to how and what you can do to convert your space. *

 

A couple recently transformed their local bank into a beautiful 5-bedroom single residence home. Bought at auction for £50,000 they featured on Channel 4 George Clarke’s remarkable renovations. 

 

Matching the type of property with the right tenant

 

Consider the area you are buying into and the intent of the tenant, the types of tenants (Are they a young professional/medium sized family, single elderly person? How will they use the space?)

 

Are you looking at properties in a university city? We have briefly covered rental yields, and amongst them student rentals are one of the highest

 

CHOOSING THE RIGHT PROPERTY: STUDENTS

At a university city you may want to consider student lets. Are you looking at flats/homes/ what is in the area?

 

Students are one of the most flexible tenant groups, with accommodation options such as flats, shared houses, renting single rooms, there is an option for everybody. 

 

Out of the options we have outlined in the above section, a flat, multifamily home, duplex would be the best options if this is your target group. 

 

*A 1-bedroom single flat to buy, would only be receiving one person’s rent. Versus a 3-bedroom home in an area close to the university or with good transport links, will have created another 2 streams of rent from one property*.

 

Can you answer these questions: Does your location meet certain expectations? e.g. Are there shops within walking distance where students can buy groceries? Can you account for the maintenance of these high-turnover rental options?

CHOOSING THE RIGHT PROPERTY: SMALL/YOUNG FAMILIES

Likely will want to make use of garden space, and a garage, whereas for a young single professional in the city, this demographic may not have time or be interested in outdoor space (especially if it requires heavy maintenance) 

This type of tenant typically is looking for a single-family home, with the intention of starting a family and creating a home for themselves. 

 

Can you answer these questions: Are there good schools in the area? Are there parks/greenery close to the location? Is there space for a good size kitchen/communal area? 

 

*If you are opting for an investment that is letting only, we have lots of helpful information to share with you*.

 

CHOOSING THE RIGHT PROPERTY: LAND PROPERTY

 

As an investor all investments are personal, and whilst you should never get emotionally invested when buying property, when you have started to build some wealth, you can use that money to do what is important to you. 

 

For example, if you are searching in a highly developed area and you find a property with a large piece of land you have a few options. 

Develop on this land as much as possible, this could look like a duplex/flat/apartments depending on your budget

Build multiple small family homes with small gardens

PRESERVE the land understanding it is highly valuable and sought after given it is one of the few pockets of green space left in the city

Rent out holiday lets/mobile homes such as yurts/tiny homes/camp sites. This would allow you to make money on the property whilst not permanently changing or affecting the landscape and this would prevent bigger corporations from mass producing homes in that area (If you’re into that) 

 

 

Helpful points:

 

Investing in listed properties comes with rules set via planning permission that need to be strictly adhered to. Weigh up whether you can cover these expenses. 

 

Student accommodation: Factor in excess costs such as, late rent, students dropping out of university and leaving a vacant room, health and safety, house rules, advertising and marketing costs, high turnover means lots of cleaning/touch ups. **On the plus side, because of the high turnover, you are bound to always have people looking for places to live even if it is short term over the course of a year or two**.

 

A smart investor might tell you that with their budget, they won’t buy one singular home. When you factor in things such as cosmetic upgrades you quickly realise there are lots of additional costs into making the space work. Therefore, diversifying that portfolio means you will create several streams that will lead to profit and passive rental income. 

 

Talk to a property investor expert, they are good at identifying pockets in the market that could be beneficial to your RO investments.

 

Investing and making property work FOR you, doesn’t have to be overwhelming. Property coach, mentor AND author Sapphire Gray, learnt how to successfully invest in property all whilst juggling the demands of being a full time Mum. If you are also looking to diversify your income and become successful in investing, join us at Savvy Women Group today!



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