Property investment stands as a prosperous prospect which can provide investors with a regular income and substantial profits and return on investment. Investing in property has been long regarded as a transaction for the wealthy however, this has widely become a misconception.
Many aspire to be a property investor but fail to understand this role can be acquired with little money to start with. Through being savvy and thinking outside the box, property investment is an option even with a low budget. If you are considering venturing into property investment with limited funds, there are strategies to undertake and several growth plans available, leaving investing in property surprisingly more lucrative and affordable as you may initially believe. Here are some top tips on how to invest with little money.
Consider the smaller scale
Size doesn’t necessarily dictate how successful your investment is going to pan out. Property investment comes in all shapes and sizes, houses in multiple occupation, student investments and studio investments, to name a few. Evidently, property investment doesn’t not have to be an entire house. Demand for rental properties are strong, particularly in bustling city centres where young professionals, graduates and current students require busy nightlife, access to transport links and proximity to place of work or study.
Rising numbers of renters are leading smaller spaces, like one-bedroom apartments and studios, to become highly sought after. Studio apartments present a more affordable option and many young professionals seeking city living are willing to compromise on space for convenience, therefore studio living is on the rise. The quality of student living is the highest it has ever been as students are constantly pushing up demands for higher spec appliances, modern designs and a better standard of living.
Look into student accommodation
Purpose built student accommodation (PBSA) can be a profitable and affordable choice offering a fantastic return on investment, with yields as high as 11.79% in certain parts of Liverpool. Sky high demand and a thriving university sector throughout the UK are far exceeding the amount of beds available, leading to considerable profits that can be produced in the student accommodation sector.
Investors can purchase a student apartment for as little as £45,450 from property specialists like RW Invest based in Liverpool, which is a far more achievable prospect over other alternatives. PBSA has been one of the top sought after asset classes over recent years as student numbers both from the UK and overseas show no sign of falling anytime soon. The UK PBSA market is estimated to be around £46 billion and with a record volume of students, the demand for student accommodation has never been higher, leaving investors with unbeatable opportunities to retain great profits.
Regeneration is one of the most notable factors to spurring profits and creating unmissable investment opportunities. Investing in areas which are yet to experience the benefits of determined investment schemes is a smart way to invest in real estate with a small pot of money.
Finding an area where prices are still low is a great first step, allowing investors to buy properties that are going to increase by capital appreciation. The future Liverpool Waters regeneration across Liverpool will completely reshape the region, and property investment in the area should increase exponentially, attracting new residents from around the globe. Property investors would be savvy to consider areas that are earmarked for extensive regeneration and aim to take advantage of lower price points if they are concerned about budget.