Property Investment Strategies: 4 Things to Consider

1. Off-Plan or Completed Properties?

Off-plan properties are simply properties not built yet, whereas completed properties are developments that are either pre-existing or have recently finished construction. There are many benefits of off-plan and completed properties, which all depend on the investor’s preferences.

The further off-plan properties are from finishing, the lower the potential purchase price. These developments can offer prices 10-15% below market value and generate immediate equity for the investor upon completion. Because of this, off-plan properties have the potential to be high-yielding investments.

While off-plan opportunities are great property investment strategies for further down the line, properties already built can be more fast-paced and immediate. Investors, for example, can immediately generate rental income if the property is already tenanted. Many BMV properties offer prices far below market value and can be more beneficial to cash buyers, as sellers desire a quicker sale.

3. AST or STL?

Following the rise of short-term rentals from the pandemic, more and more landlords have been considering an assured shorthold tenancy (AST) or short-term let (STL).

Short-term rentals, like holiday homes, can be more flexible and straightforward for landlords. They are fantastic options for tourist areas and seasons but are also beneficial in areas close to the likes of airports, hospitals, and popular amenities.

While short-term lets require higher levels of costs and maintenance, they can often offer higher income than traditional buy-to-lets. However, they are seen to be riskier due to potential void periods between new tenants. Because of this, landlords and investors still opt for assured shorthold tenancies.

Traditional long-term buy-to-lets are safer, more secure investments. Less management is needed and furnishing the property is not necessary. With longer contracts, investors can even retain tenants by improving the energy efficiency of the property, which also increases its value. What is more, single lets (one-bedroom properties) cost less, see higher demand, and are the most profitable.