How to Invest In Property in 2024 and Which Investment Strategies Actually Work?

we get so many people ask us what strategies they should invest in within property so in this video we're going to discuss the top five property investment strategies that you should consider looking at in 2024 if you are new here my name is AK and I'm Leah and this is our Channel where we talk about property investing business and working together as a [Music] couple for most of us 2023 is now a distant memory so we thought this would be a good opportunity to reflect on some of the things that have helped shape the rental market so we can get a better understanding as to what may lie ahead for this upcoming year now now looking back at last year a report from spare room showed that the UK average room rents exceeded £800 the first time on record with London averages exceeding ,000 for the first time ever and as a result of that three qus of renters have said that they'd either considered moving or that they were planning to in order to escape the higher rents so let's take a quick look at this graph by a spare room we can see the huge rent increase in renters looking for rooms versus the number of rooms to rent on the market towards the back end of 2022 however the ratio of people looking versus the number of rooms available has fallen back to its lowest point in over two years and a report from zupa here showed that the average rents for new lets had risen by almost 10% since just a year ago demand for rental homes is a third higher than the 5-year average and z people expects that rents Will Rise by 5% this year in 2024 if we take London specifically they expect a smaller increase of just 2% this year which will undoubtedly put even more pressure on renters who are already struggling to afford skyh High rents so why is there being such strong rental demand in the last few years well we all remember the pandemic this really did slow things down for a while but with the reopening of the economy and international travel this has really exaggerated demand of course it goes with without saying but the higher mortgage rates since Autumn 2022 have made home ownership a lot more expensive now you may have been thinking of buying a house only to find out that your mortgage costs have increased by five times or more which makes renting in some cases more attractive until things just Co off slightly and lastly 2022 had record levels of immigration and particularly High numbers of overseas students who require rental rooms or homes all of these things have compounded to leave the UK Market with a huge uge rental demand that lacks adequate stock levels so what that means is there's just not enough homes to house the people that are looking to be housed now I'm sure we've labored the point enough that rental demand is super high so let's take a look at the top five investment strategies that you should be looking for in 2024 number one single let Properties or a traditional buy tol this is the most traditional and easy to understand example of property investing probably also the first thing anyone thinks of when you say you're a property investor it's the one I hear a lot of people say oh that doesn't work anymore more on that shortly our single let residential property is a property rented to a single tenant which can either be an individual person or an entire family and like any strategy it's important to understand the pros and the cons so some of the pros for a single let property include huge demand and less capital and expert knowledge to get started it also allows investors to generate two types of returns through a combination of rental return and also so Capital Growth returns when or if you come to sell that property one of the biggest advantages to this strategy though is the stability you gain through longer term lets so often it's families or young couples who want to make their home and as long as you a good landlord tenants often want to stay longer of course every strategy has its negatives and balet is no different one of the main drawbacks to this Shashi is that it's becoming harder to make larger returns with the rise in interest rates however it doesn't mean that they should be overlooked as they will likely be a more hands-off addition to your portfolio in the long run number two is hmos otherwise known as houses of multiple occupancy this is where houses are rented out to multiple tenants who each pay rent and have shared facilities like a shared bathroom or shared kitchen if this is something that interests you then you may want to check out one of our recent HMO projects linked above in the cards one of the main advantages to this strategy is the potential for much higher returns however they do require more work to maintain and the costs to run them are greater because most of the time the landlord pays the bills number three is social housing now social housing exists to help people who can't afford to rent or buy a home on the open market and in some cases these projects can be built with the support of government funding this strategy can be implemented with many different types of property it would work with anything from a two- bed single lat all the way to a very large HMO or commercial style property the main advantage to this strategy is that you can charge less rent but still make good if not better returns than you would on a privately let property now the main reason for this a lot of the time is that the Housing Association or the council often take the bills and the maintenance on for you you may want to check out our latest 8 bed social housing project where we analyze all the numbers which will be linked up in the cards above now of course like most strategies you must understand the potential pitfalls and in this strategy it's super important that you have the right paperwork in place to cover you for damages or any mismanagement of the property now on to number four it's service accommodation or holiday lets this strategy has really grown in popularity especially since the pandemic and for a good reason these types of properties are let out on a shortterm basis by people either on holiday or people on short-term work trips for example you know the ones you look at on Airbnb or booking.com for example when you're looking for somewhere to stay potentially for a slightly longer period of time now this strategy allows you the potential to make a higher return as you are renting the property on a nightly basis rather than a monthly basis however you will need to expect to be more involved in maintaining and marketing the property and the other thing to consider with this strategy are the void periods especially if it's based in an area that sees more seasonal demand such as Seaside Town strategy number five is flips now this strategy involves buying a house renovating it and selling it on for a profit in a short period of time and it's a fantastic strategy to generate Capital but not one that provides you with a longer term sustainable income a lot of people that come to me for mentoring often say that they want to do flips but they don't necessarily understand that it's not a strategy that will pay you each month over and over a common mistake that we see with flips is people underestimating the time and all the money that the project will require and along with that not necessarily understanding what areas will work best for a flip now with inflation and interest interest rates anticipated to fall going into 2024 now just as a caveat I don't have a crystal ball but it's likely that we will see more buyers back in the market looking for their new home and this presents us with some very interesting opportunities in this space so those were the top five shies that we think you should look at in 2024 and if you would like to start or elevate your existing property investment Journey then you can click on the link in our description and check out our website property couple. co.uk where we'll soon be posting and sharing free resources and some of our best tips and advice about property investing so I hope you enjoyed that if you haven't already please hit that subscribe button and we will see you in the next video bye bye

Channel: Property Couple

Views: 3,619

Keywords: uk property, uk real estate, uk property investor, how to start investing in property, buy to let, HMO, hmo conversion, property investing, UK real estate, wealth building, property investment tips, real estate entrepreneurship, financial success, property portfolio growth, financial freedom, UK property market, property investment strategies, entrepreneurial journey, real estate partnerships, business and life balance, personal finance UK, property

Id: cf9EEWFfXpo

Length: 8min 2sec (482 seconds)

Published: Sun Jan 28 2024