Getting Started in property investment can be overwhelming and one of the key questions you should try to answer is “What type of property should I invest in?” And there will be different answers depending on your circumstances, your interest, your experience and where you choose to invest. In reality, as you build your portfolio, you will probably want to invest in more than one type of property. To help you get started we have put together a quick guide to illustrate some of the advantages and disadvantages of investing in the different types of property.
OLDER HOUSES 
- Advantages
- Generally lower purchase cost.
- Generally higher gross rental yield.
- Often good opportunity for immediate capital growth following refurbishment.
- Good tenant demand.
- Disadvantages
- Property maintenance can be high if attention to detail not paid to initial refurbishment.
HMO PROPERTIES 
A House in multiple occupation includes a house which is split into bedsits, house share, students in shared accommodation and hostels or bed and breakfast accommodation which are not solely used for holidays.
- Advantages
- Disadvantages
- High property maintenance costs.
- Larger purchase deposits needed.
- Lower capital growth potential.
APARTMENTS AND FLATS 
- Advantages
- Tenant demand is good.
- Monthly cash flow is good.
- Good capital growth potential.
- Disadvantages
- Could have high building service charges.
- Often higher purchase costs.
NEW OR VIRTUALLY NEW HOUSES 
- Advantages
- Lower maintenance costs could lead to higher yields.
- New houses come with 1 or 2 year builder defect warranties.
- Good tenant demand.
- Disadvantages
- Higher purchase cost.
- Limited opportunities for immediate capital growth.
STUDENT LET APARTMENTS 
- Advantages
- There is a high demand for good student accommodation in many university towns and cities.
- Yields can be high.
- Disadvantages
- You may find it difficult to secure finance from a bank for some types of student accommodation
- The high cost of studying is reducing demand in some areas.
- In other areas, there is an oversupply of student accommodation.
- Selling this type of property can be difficult.
HOLIDAY HOMES 
- Advantages
- The landlord can use the property too.
- Good capital appreciation potential in the right areas.
- Some tax advantages.
- Disadvantages
- Income can be seasonal.
- Can be time-consuming to manage and rent out.
- Return on investment can be poor.
- Initial purchase costs can be high.
For advice for novice property investors book in with Keith Newby for a free one-to-one, informal, no obligation consultation.
