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Best Property Investment Strategies for the Next 12 Months

By 8 December 2021No Comments

The property market was one sector that positively flourished during the pandemic. The market pretty much went haywire after the first lockdown lifted, during which time, homeowners had plenty of time to decide they wanted to move to more spacious homes with gardens.

Selling a property was easy thanks to a market that remained buoyant all year and is only now starting to subside, following the end of both the Stamp Duty holiday and furlough. Property prices are stabilising and starting to make property investment opportunities in the UK much more attractive to investors again. The following are some of the most popular strategies for 2022:

Assisted Sales

An Assisted Sale (AS) is similar to a flipping strategy, ie you take a property that the vendor can’t sell because it needs modernising, for instance. You then get a JV partner on board to pay for the renovations, which you undertake. When the property is sold, you keep the profit, giving a cut to both the JV partner (together with his or her money back) and the vendor (for selling it at such a low price, to begin with).

The benefits of this kind of strategy are that you can get a property without a mortgage or Stamp Duty costs. You’ll also have a lump sum of money within months, i.e., as soon as you renovate and quickly sell the property. The best way to continue with this type of strategy is to have several AS properties in one year so that as one completes, you already have your next.

Rent to rent HMO

You can take on the management of an HMO from a landlord by renting the property from him or at a lower than market value rate, then renting out the rooms yourself for a profit. The HMO will already be set up. It may need some light modernising, which you could fund in order to be able to charge a higher rent.

The reason a landlord might be keen on this type of deal is that they may be tired of managing it themselves or they’ve moved away from the area and thought their current high street management agent is too expensive etc.

Commercial conversions

It’s now easier than ever to convert a commercial property into residential. That’s because, since last year, you no longer need planning permission thanks to new permitted development rights. In addition, builders no longer need a standard planning application to demolish and rebuild empty buildings, if they plan on converting them into homes. New residential properties will, however, still need to comply with local authority Building Regulations when it comes to selling a property.

Right now, you will find plenty of commercial landlords keen to quickly sell property in the form of obsolete office and retail space, much of which fell victim to the pandemic’s working from home ethos, and which many companies have continued to adopt.

How Sourced can help

Whether it’s one of the above strategies you decide to adopt, or you opt for another property strategy completely, the main thing is that at the end of the day that plan has to be one that suits your individual financial needs and lifestyle. There are lots of ways to make money from property and at Sourced, our goal is to help anyone succeed in property, whether they had previous experience in the market or not. To find out more about what are the benefits of joining Sourced, download our prospectus today.

Sam Clayton

Franchise Manager