The United Kingdom’s housing market features a whole host of different property types. As a result, there are endless investment opportunities, many of which require different budgets. Of course, numerous factors impact house prices, including age, condition, location, and size. So, how do you get the most out of your investment? Well, here are several different property types to buy depending on your budget and experience.
Bungalows and Flats
It’s not unusual for those who are new to the housing market to kick-start their portfolio with a one-story property. As such, bungalows and flats are the perfect options for those wanting a small-scale investment. Flats, in particular, typically represent a stable long-term investment, with Ashburnham Insurance stating that they grow in value faster than other property types. With profitable opportunities, this opens the door to further investment ventures in the future.
Breaking into the bungalow market is also a solid starting point for first-time property investors. At the time of writing, Whitegates reports that fewer bungalows are being built, meaning there’s high demand and low supply. Their sought-after nature and low maintenance make them an ideal investment venture for those wanting to start with something small.
If you come into some money, you may set your property sights on something a little larger than bungalows and flats. As of March 2020, Gov.uk reports that the average price in England for a detached house sat at £379,050. By comparison, a flat cost £226,383. Those who can cover a property’s initial investment costs are more likely to appeal to a demographic that generally adopts a more long-term approach to their housing situations.
Although there are higher upkeep costs with a detached property, they offer tenants the privacy that other house types do not. There’s also more choice from a buying standpoint when investing in a standalone property. Not only are they available in urban areas, but buyers can also explore the detached rural market.
Mid-City Terraced House
Depending on the location, terraced houses can be at the top end of an investor’s budget. Those in London, for example, are at a size and cost that only lottery winners can afford. Because of this, it’s pivotal to have a plan if you come into a lot of money and wish to target the terraced housing market. Should you come into a windfall, for example, creating a forward-thinking plan such as investment in property ensures that your ultimate financial end goal remains within sight and that you are investing wisely. Not only that, but it helps to keep the long-term objective in mind. Considering the long game and investing in a terrace house opens the door to protecting and growing your initial investment.
Although they don’t share a detached property’s privacy, terraced houses’ inner-city location makes them sought-after among urban tenants. Those in the capital are often spread across numerous floors and feature a large number of bedrooms.
The Property Market is Your Oyster
Ultimately, there are many different property types for aspiring investors to buy in the UK. Depending on the size of your windfall, you can either start small with a bungalow or flat, or instead jump straight into costly detached properties and terraced designs. There’s a market for each type, but remember to keep your financial end goal in sight and invest methodically.