Property investment is no longer just for the very wealthy. It can be a great way to save up for the future and it can be more affordable than you might have assumed. By being savvy and thinking outside the box, property investment can be an option even on a low budget.
Choose an Area on the Rise
Properties in areas which are yet to experience the benefits of extensive investment can be a great way to get value for money in property investment. Plans for regeneration and investment can easily be found, allowing investors to buy properties that are going to increase in capital appreciation. It may seem odd to buy a property in an area that currently has a less than perfect reputation, however these are often the chosen location for developers, due to the amount of available space and the lower cost of land. As the number of pristine high rises and new business spaces increases, so does the value of residential property. The future Wirral Waters development in Liverpool will completely rejuvenate the region, and affordable property investment there should increase in value exponentially. This kind of ambitious project is transformative for a region, attracting both new residents and new opportunities. Property investors on a low budget would be wise to consider areas earmarked for future investment and take advantage of the current lower price points.
Look Slightly Further Out
By looking slightly outside the city centre, investors can get far more for their money which is essential when investing with a lower budget. UK cities are rapidly expanding and areas on the outskirts are increasingly becoming city centre locations. Manchester is a perfect example of this, with areas like Salford Quays and Ancoats being totally transformed by new developments and increased investment. Not far out of the city centre, improved transport links make these locations perfect for young professionals. The demand for buy to let property in city centre locations is incredibly high, so looking at a map and moving your target area can pay off in the future.
Look at Student Accommodation
Purpose Built Student Accommodation can be a great investment for lower budgets. This lucrative sector offers great return on investment, with yields up to 8%. Investors can purchase a student apartment for as little as £45,450 from expert property investment firms like RW Invest. The student sector is booming, with the demand for accommodation far outweighing supply. In 2017 there were 2.32 million students living in the UK, making up a significant percentage of the population. International students are also coming to the UK in greater numbers, and are often looking for high quality, modern accommodation. With this record volume of students, the demand for purpose-built student accommodation has never been higher, providing investors with valuable opportunities for profit.
Think Small
Property investment doesn’t have to be an entire house. There has been an increasing rise in demand for rental property everywhere in the UK, with a fifth of households now leasing from a private landlord. With such a large increase in the number of renters, smaller spaces like one-bedroom apartments and studios are becoming highly sought after. Studio apartments are a far more affordable investment property. Many young professionals are happy to sacrifice space for a great city centre location and studio living has become increasingly popular. The quality of studio apartments is also far higher than it has ever been. New developments now commonly incorporate studio flats into their plans, with features like on-site gyms, parking spaces and high-speed internet as standard. The increasing demand for studio apartments will see their value rise, making them a great investment for capital appreciation.