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Most people know that there’s good money to be made from bricks and mortar. However, a deposit on a house isn’t something that everyone has the capital for straight away. If this sounds like you – you don’t have to miss out.
Here’s a list of alternatives to traditional property investment to inspire you.
Alternatives Ways to Invest in Property
- Car park investment. Who said that investing in property had to involve four walls and a roof? Car park investment is on the rise in the UK, and for good reason. There’s a large range of opportunities; from single spaces to entire car parks, and if they’re owner-operated, they require a lot less management.
- Invest in a hotel room. Here’s an intriguing alternative to conventional buy-to-let investment – purchasing a lease on a hotel room (usually 999 years), then splitting the resulting profits with the owners of the hotel. Even better, some schemes let you use the room free-of-charge for a certain number of nights a year.
- Buy a caravan. Caravan park holidays are still enormously popular in the UK, and several of the parks offer an investment scheme for buyers. The returns are solid (around 8% in some parks, which is comparable to buy-to-let in some parts of the country) and better still, they’re a lot cheaper than traditional bricks and mortar. As with the hotel rooms, you’re also allowed to use the caravan for your own holidays.
- Invest in a shop. Last year saw a surge of landlords invest in retail premises, mainly due to the tax changes introduced in 2016. Commercial properties aren’t subject to the same taxation as second homes, which has made them a far more appealing prospect. And, if that wasn’t enough, the yields are often higher than conventional buy-to-let investment. Our advice? Purchase in an area that’s close to where you live, as this will make it easier to keep an eye on your investment.
- Invest with friends or family. If you can’t afford the money for a deposit on a second home, a great option is forming a buying group with trusted friends or family, then splitting the profits afterwards. Alternatively, if your friends aren’t interested, there are websites that connect likeminded investors, enabling you to locate serious investors with ease.
- Buy a pub. Pubs have hit the news in recent years – mainly for being a struggling trade, with many landlords being forced to sell up. However, with this form of investment, it’s really a matter of location. Purchase a high-performing pub and you could end up enjoying good annual yields. They’re also notoriously ‘easily marketable’ which means they’re relatively easy to sell if you need quick access to funds.
What About Traditional Property Investment?
There are still plenty of benefits to buying property – especially if you invest in an upcoming location, where prices are likely to rise. However, if you’re building a portfolio, it’s useful to know that there are other forms of ‘bricks and mortar’ investment out there, which may offer just the right amount of diversification you were looking for.