Despite high levels of market uncertainty over the last year, property investments still seem positive, with general cautiousness starting to disappear. This means there is still money to be made from property, and it is important to understand the best ways to do this.

Rental growth seems set to improve, if only slightly, and property fundamentals seem good. Whilst regional markets still differ greatly from central London trading, there is still better value in the regional options.

This may be due to the fact that whilst London is currently thriving, it may yet be hit by the Brexit agreements. There may be less of direct impact on regional markets that are not being bolstered by foreign capital.

What Property To Invest In

Whilst the Brexit effect will probably hit London office space at some point, regional cities are more likely to see a significant increase in office take-up, whilst industrial and logistics property also seems to be on the up.

Outside of the traditional rental market, there are now better investment opportunities in more social property schemes such as healthcare and student accommodation. With the UK leading in education, an ageing population and a shortfall in social housing, these options could stand up well to any economic changes.

Whilst a residential market may experience fluctuations, these alternative properties will be in more constant need and are less likely to be hit by mortgage changes or investment rules.

One area of property that may struggle to deliver a healthy income is that of retail units. With increased staff wages, uncertainties over Brexit, and the cost of overheads all weighing in on the retail market, it is likely that many will focus more on online selling instead. Any economic hit on the domestic pocket are likely to hit the retail market first as people start watch their pennies more closely.

How To Invest
A closed ended fund means that a liquidity buffer is not required, and so it can gain a purer exposure to the asset class. This makes it more beneficial than open-ended investment funds which have recently suffered due to withdrawals exceeding both the redemptions and liquid assets held within the funds.

Whilst the long Brexit process is only just beginning, and its affects are yet to be known or understood, property income is still buoyant and specific areas are likely to benefit in particular. Whilst some will be wary of investing at this time, with the right homework it is possible to find opportunities that are likely to weather the storm no matter what happens, and could deliver some good returns.

Author Bio
Hopwood House are experts in property investment, with a large range of property investments across the UK in the buy-to-let, commercial property and student property investment markets

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Daniel Peacock

5 Replies to “Making The Most Of Property Income in 2017”

  1. Hello,
    Would someone very courteously put the following into Plain English, please:

    “A closed ended fund means that a liquidity buffer is not required, and so it can gain a purer exposure to the asset class. This makes it more beneficial than open-ended investment funds which have recently suffered due to withdrawals exceeding both the redemptions and liquid assets held within the funds…”.

    Thank you.

    1. Hi JB, a CEF Fund is a fixed share collective investment fund (or pool) whilst an open end fund is none fixed. The writer here is simply stating a fixed fund is better than an open one as you simply have a set rate in losses & gains rather than an open pot.

      1. Thank you for this.
        However, you haven’t really addressed the nub – or in-crowd jargon language, really – of the question.
        Feel free to have another go at ‘closed-ended fund’; ‘liquidity buffer/assets’; and ‘a purer exposure’ to the ‘asset class’.
        Murky!

  2. Hi Daniel!

    Though it is an useful piece of information. But will you be so kind to put some light on rental property investment in Essex. What does 2017 forecast say about this?

    Regards.

    1. The knock on effect of any London price falls or stagnation could work in two ways for its bordering counties.. It could easily see increased investment meaning increased rents in areas like Essex & Kent (which would eventually drive back up London rents) or they could follow with the stagnation as investors look to invest in other areas around the country where rental yields are higher (this just means rents will stay as they pretty much are until London decides to soar again and it will)? Whilst London prices drive the economy the ripple effect is passed on through its neighboring towns so the higher the val in London the better for places like Essex. That is not necessarily the case for the rest of the UK. Whilst London prices will not drastically fall, the spread might become greater when it comes to rental values as everywhere else will slowly catch up before prices increase in the capital due simply to ‘if its worth that much there it must be worth more here’… I personally don’t see any issues with the ‘Essex’ market or investing in any other area of the UK as long as your property is purchased at the right market price (or lower), in the right condition, can offer the right (positive) rental yield for you and has the potential demand for reselling without loss both now and in the not too distant future. If that simple strategy is followed then whatever any expert forecasts your property will always be a stable investment.

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