Property Investing Trends for 2018
Before we take a look at what’s happening this year, let’s take a quick look back at some of the conjectures we made in our post Property Investing Trends - Projections for 2015.
Renovating derelict properties
First, we looked at renovations. According to articles at that time, the canny property investor should buy up a run-down property and do it up before renting it out to tenants. Our property mentors commented that bargains that can be snapped up at auction are few and far between – and that hasn’t changed in 2018.
Plus, you need significant funds to do extensive work such as adding more rooms, redoing kitchens/bathrooms or building a roof extension. Financing renovation work can be expensive and there are renovation mortgages available to help.
While it’s a good idea to refurbish a property so it will be more enticing, and you can demand higher rents, you should look at it as a longer-term investment – rather than thinking you can sell it on for a profit once it’s been renovated.
Because of tax changes, holding property in your personal name is on the decline in 2018. Today’s property investor is more likely to try different strategies to build a portfolio that will bring in good rental yields over the long term.
Investing in houses of multiple occupancy (HMOs)
HMOs are still popular with property investors. As long as you’re able to handle the work that’s involved in their upkeep – and are prepared to fully comply with laws regarding registering with local authorities – HMOs offer high rental yields.
They’re a great investment in areas with a high student population, and you can expect consistent rental demand in the right location – but check saturation levels.
Rise in student properties
In 2018, property investors are aware of the increasing need for student accommodation as the numbers of students in the UK continues to rise rapidly.
This is a profitable area – and also a competitive one. Nowadays, students look for a much higher standard of accommodation than they used to. And if your rental property isn’t up to scratch, it could remain empty.
As well as making sure the property is fitted out to a good standard, you’ll also need to ensure it has fast broadband in every room – this is a ‘must have’ for any student.
Eco-houses are popular
This is one trend from 2015 that hasn’t gone away. Utility costs and energy consumption are still priorities for many.
As a result, tenants will look for rentals that have eco measures in place such as good insulation, triple glazing and even solar panels and ground source heat pumps. What they’ll avoid are energy-guzzling boilers and any properties that are going to consume large amounts of electricity and gas.
Increase in rental demand
Property prices in 2018 remain high – with a high proportion of the population unable to take their first steps on the property ladder.
As a result, there’s a huge demand for rented accommodation. In some areas, the buy-to-let market can’t keep up with demand. For the property investor, it’s just a question of choosing the right location – and profits are guaranteed.
Would you like to learn the best property investment strategies for 2018?
Our property mentors are keen to show you how to invest in property.
Register for our Property Foundations Course to understand the different property investment strategies that you can use in today’s property market.
This property training course is for you if you’re just starting out in property investment, or you need a refresher. Perhaps you’re already established but looking to diversity by trying some new investment strategies?
This course will teach you 12 strategies in 3 days.
Dates: 6, 7, 8 April 2018
Venue: Park Inn Hotel, Heathrow
Register Now as spaces on this course are limited!