If you have been benefitting from property investment, then you are probably looking to expand your business and diversify your property portfolio. Owning property is one of the best way to earn money from your savings and rental income, and capital appreciation makes property investment a worthwhile strategy. A diverse property portfolio allows the investor to minimise risk by spreading their assets through owning different properties that have a different appeal. Whether they are in different locations, are different types of property or have a different target tenant.If you are looking to build up your property portfolio and purchase a wider range of properties, then these simple tips on how to diversify your property portfolio will help you to find the perfect new acquisitions.
Studio apartments are a great and affordable investment property which can allow investors to diversify their portfolio even with a smaller budget. Studio living has become increasingly popular and many young professionals are happy to sacrifice space for a better location. Studio apartments are also far higher quality than they have ever been, a long shot from cramped spaces and fold out beds from the past. New developments incorporate studio flats as an important part of their plans, as well as luxurious amenities like on-site gyms, parking spaces and high-speed internet as standard. As city centre populations grow, the increasing demand for studio apartments will see their value rise, making them a great investment for capital gains.
Look at Cheaper Areas
Another way to have a more diverse property portfolio is to look for cheaper properties in more affordable areas. If you live in an area that is especially expensive it can be worth considering property further afield. Consider the UK’s buy to let hotspots and make an investment decision basedon data and research. Affordable areas in the UK include parts of Liverpool, Leeds and Manchester. RW Invest have a range of affordable Manchester investment properties which can be seen at https://www.rw-invest.com/manchester-property-investments/. Compared to a London property, which can cost upwards of half a million, investing in a cheaper area can allow you to purchase more than one property.
Think About Different Types of Property
Another strategy you can use is to own different types of property. There are a huge number of variations in the type of property you can invest in, and there may be some lucrative opportunities you haven’t considered before. Student accommodation has become one of the UK’s most popular asset classes, with a high demand from the growing student population and reliable yields. If you only own residential property, it may be worth considering investing in some purpose-built student accommodation units too. Another form of property you could consider is commercial property – a range of shops, offices and storage spaces are available for property investors to purchase and try out different assets. HMOs or houses with multiple occupancy are another asset class which is becoming more popular for landlords, as they can often gain more rent from the same space, letting out different rooms to different tenants.
By holding a wide variety of property assets, investors can protect themselves from potential risk and generate more income from more properties.