WHERE ARE THE CURRENT INVESTMENT OPPORTUNITIES?

Discussion in 'Property Investment Strategies' started by Gareth Bain, Jul 23, 2018.

  1. Gareth Bain

    Gareth Bain Member Forum Partner

    Despite a turbulent property marketplace, purchasing a property remains one of the best investments you can make, and there are always opportunities out there to make a healthy return on investment, especially if you’re willing to look a little harder!

    However, since 2007, the so-called “jilted generation” has understandably struggled to get on the property ladder due to a deteriorating economic landscape.

    In response to this, the Government was forced to step in, initiating a number of Help to Buy schemes, including a Help to Buy equity scheme, which provides up to 80% of the equity required for the property. Subsequently, 2018 is one of the best times to get started in property investment.

    These types of schemes have helped thousands of first time buyers to secure the deposit they need to get their foot on the property ladder. And of course, it also means that there are now more opportunities than ever before to buy a property for both new and experienced property investors.

    Finding investment opportunities in the UK has never been easier, especially if you are looking for a first time investment property. But there are plenty of other ways to invest in a property.

    Whether you’re a property investor or you’re looking for property investment advice, we’ve taken a look at the other opportunities for investing in property…

    DOWNSIZING
    The ageing population is now starting to downsize due to the fact that their children have flown the nest, they have too much space, or they simply cannot manage the property’s maintenance requirements. This means there are now a number of prestigious large houses popping up on the property market.

    ASSISTED LIVING
    Assisted living isn’t an easy decision, especially if you’ve been used to living an independent life in a property you’re familiar with.

    However, assisted living accommodation is continuing to increase in popularity due to the fact that it allows residents to retain their independence, but also access the help they need. Assisted living accommodation also has a great community feel, where residents can interact with each other and make new friends.

    In the US, 17% of the aging population live in assisted living accommodation, 17% in Australia, and only 1% in the UK. With this in mind, there is a growing opportunity there to tap into this market place, especially as people are living for longer and longer.

    PRS – PRIVATE RENTAL SCHEME
    Although there are a number of schemes available to help young people to get on the property ladder, a record number of the younger generation are renting.

    This means it’s a great time to invest in flats, or even in a whole block of flats! And, with experts predicting that, by 2021, 25% will be living in some form of PRS, and the younger generation being widely recognised as the renting generation, now is the perfect time to invest in this type of project.

    STUDENT ACCOMMODATION
    The student population is continuing to grow, with more students than ever before enrolling in universities across the country. As a result, there is now an overwhelming demand for student accommodation, meaning it’s a great time to invest in this type of project, especially in university towns such as Newcastle, Liverpool, Manchester and London!

    PD PERMITTED DEVELOPMENTS (OFFICES)
    A lot of developers have converted old offices into residential properties, which means there is now a need for new office space, especially as companies are struggling to find properties and rent is now at an all-time high!

    WAREHOUSES
    Due to a decline in high street stores, many small businesses are now looking for warehouse space to store their stock, as well as distribution centres.

    To find out more about potential investment opportunities in the market, please get in touch or visit our product page.
     
  2. Longterminvestor

    Longterminvestor Administrator

    Hi @Gareth Bain

    Can i just clarify your point on government assistance allowing those who would not normally be able to afford a property to climb onto the property ladder. Surely this does not solve the long term issue of affordable property, loading those who would not normally be able to afford a property with state funded additional capital. These schemes cannot last forever and those not eligible for state assistance, or looking to buy later when these schemes have finished, can only see prices raising faster than wages and becoming more and more unaffordable.

    In many cases state assistance to purchase a property is simply a means of kicking the issue into the long grass for someone else to sort out further down the line. Surely we need solutions not another sticky plaster?
     
  3. Gareth Bain

    Gareth Bain Member Forum Partner

    You do raise a valid point regarding the longevity of these government funded schemes but I think that any assistance by government helps. Although it might be short term it is helping those who would previously not been available to purchase property that ability to get on the property ladder.

    In order to address the long-term issue of affordable housing, local councils need to work with government to align matters. If a developer wants to build a block of micro-apartments or a co-living development (targeting first-time buyers), the local council needs to be aligned with governments bigger plans to solve the housing problem.

    I agree with you that this is not a permanent solution but it has helped a large number of first-time buyers get onto the property ladder.
     
  4. Longterminvestor

    Longterminvestor Administrator

    Hi @Gareth Bain

    I totally agree with all of your comments but my main issue is that say for example, for every 1000 people the funding schemes helps onto the ladder, how many are being pushed further and further away as prices rise and financial assistance eventually comes to an end. Some would argue that when the assistance ends this would see prices falling back to "affordable" levels.

    This is not right in my view. No government of the day would ever get elected again working to bring property prices down so more people could get onto the ladder. As pension provisions become a greater issue for those in later life (with the state pension likely to be means tested in years to come) the only asset many people have is their home.

    The government today is paying the price, as will others in the future, for no government having the courage to tackle the housing issue, instead prefering to kick it into the long grass for the next government, and so the vicious circle continues.
     
  5. nmb

    nmb Well-Known Member

    I am interested in the aspect of aging and downsizing which in itself brings more challenges for first time buyers and those wanting to climb up the property ladder.

    Is it fair to say that an aging population looking to downsize could in theory lead to an increase in high end properties on the market (already out of the reach of first time buyers) but more importantly lead to increased competition in the middle to lower section of the market. Will this not also lead to upwards pressure on house prices?

    Dont want to sound all doom and gloom for first time buyers but I am finding it hard to see how they will get on the ladder?
     
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