At Castle View Finance, we understand the importance of developing a solid strategy when it comes to property investment. We understand your desires and want to help you reach your investment goals. With our expertise and experience, we can guide you on a range of powerful strategies designed to maximise your returns and build a successful property portfolio.
There is no one-size-fits-all approach or standard template for property investment strategies. The most suitable strategies for you will depend on several factors, including your financial situation, risk tolerance, goals and ambitions, available time, willingness to handle complexities, credit rating, and whether you seek short or long-term gains. You may not be aware of the diverse range of strategies available to generate wealth from property, both in the short and long term. Let’s explore some of these property investment strategies:
This strategy involves purchasing common houses with good yields in local areas that appeal to the majority of tenants. It is a buy-and-hold investment approach that provides long-term cash flow and equity. This strategy carries less risk, allows for easy access to financing, and is relatively manageable. With sufficient capital, you can quickly build a sizeable portfolio, increase cash flow per unit, and safeguard your funds against low-interest rates and inflation.
The BRRR strategy allows you to leverage the forced appreciation of a property through renovations, while also benefiting from rental income. By refinancing the property at a higher valuation, you can recoup your initial investment, or even potentially pull out additional funds to reinvest in new properties.
Hybrid Refurb & Hold: Purchase a property in an expensive area, refurbish it to a high standard, and hold it until its value appreciates.
Large Commercial Office Space: Invest in large commercial buildings and rent out office space to business professionals on full repairing and insuring (FRI) leases.
New Construction Build to Rent/Sell (Residential): Buy land and construct houses with the intention of reselling or holding them for the long term.
Hidden Profit in Short Leasehold Flats: Purchase a property for cash, extend the lease or obtain indemnity insurance, set up a new management company, increase its value, and rent out the unit.
With this strategy, instead of renting out an entire property to one family, you let individual rooms to maximise income, cash flow, and yield. The more rooms you can allocate within a unit, the higher your potential income.
High-End 'Boutique': Offering boutique, mini hotel room accommodation for high-end professionals in central or affluent areas.
Postgrad/Professional: Targeting a slightly larger market than the boutique model but with a slight downgrade in quality.
Blue Collar: Focusing on tenants in the lower price range, often located near major industries or hospitals.
Student: Especially effective in university cities, within proximity to campuses, with higher rent potential.
LHA/DSS: Catering to the lower end of the market with minimal capital outlay, but also involving higher management and potential bad debt.
This strategy, also known as flipping, involves buying, refurbishing, and selling residential properties for short-term gains. Flipping can generate significant cash returns, particularly in growing markets, and offers a higher return on time investment.
Re-modelling Property: Transforming a flat with a large living room into a two-bedroom flat by converting the kitchen into an additional bedroom.
Assisted Sale: Assisting a seller in selling their property through a joint-venture agreement, earning income from helping them complete the sale.
Cash Purchase, Sell on via Vendor Financing: Buying properties with cash and immediately reselling them to investors who may not qualify for traditional mortgages.
Subject to Planning Permission: Exchanging contracts subject to planning permission to convert commercial units into flats for first-time buyers or investors.
Shoebox (Studio Flats): Purchasing a property with existing or potential subdivision, obtaining retrospective planning permission, and creating new titles for sale or rental.
Garden Development/Land Banking: Purchasing land to increase its value through planning permission and subsequent subdivision or development.
Rather than buying a property outright, this strategy involves taking an option to purchase it. By securing the option, you gain control over the property without the immediate financial commitment, allowing you to generate significant cash flow with limited funds.
A variation of property options, delayed completions or instalment contracts involve exchanging property to assume ownership while delaying completion or paying in instalments over an extended period.
With recent planning law changes, converting commercial properties (offices) into residential flats has become more accessible. This presents opportunities for profit through change of use, either by holding the flats for rental income or selling them for immediate profit.
Partnering with a JV syndicate allows you to invest in properties without using your own funds. Joint ventures offer the advantage of combining traditional purchasing methods with your partner's capital, expertise, and contacts, resulting in shared ownership and mutual benefits.
Crowdfunding/Peer-to-Peer Lending: Raising finance by pooling small contributions from a large number of individuals.
Private Loans: Securing loans from private individuals rather than traditional banks or institutions, often with more favourable rates and terms.
Bridging Loans: Short-term funding options used for quick property purchases or when traditional financing is unavailable.
Seller Financing: Acquiring properties without involving banks or leading institutions, allowing for hassle-free purchases and favourable income for property owners.
Deal packaging involves selling a property deal to another buyer for a fee. This approach, also known as wholesaling or property sourcing, allows you to sell leads using assignable contracts, sub-sales, or option agreements. Client-facing deal packaging involves providing additional services such as managing the purchasing, legal, and refurbishment processes to help clients build their property portfolios.
Turn-Key Investing: Buying, refurbishing, and selling properties to overseas investors seeking reliable investment opportunities. You handle property management, providing a truly passive investment for buyers.
Portfolio that have experienced significant appreciation. We can assist you in unlocking the equity trapped within these properties and guide you in leveraging those funds to seize new investment opportunities.
At Castle View Finance, we are committed to helping you tailor these strategies to suit your unique goals and financial situation. Our expertise and deep understanding of the property market enable us to provide personalised guidance that aligns with your investment objectives.