We have written many times about the best locations for property investment, before the financial crisis such property investment advice would have been taken almost as read, but now most investors are sticking to a strict strategy for investing in property, including much more research and choosing based on individual opportunities rather than so-called hot locations.
Thus, while we have given our predictions on the best locations for investment in 2011, we also wanted to give our advice and predictions on the best areas of investment. Any good property investment guide or property investment advice will state that a good property investment strategy will be based around a diversified portfolio, but at the same time it is wise to choose a few areas and become an expert on them, rather than becoming a jack of all trades master of none.
Many readers will have heard that property investments are recovering, but as with almost every sphere of this recovery it is patchy, uneven and hard to measure. In a way though this makes it easier to give advice on property investment, because there are certain fields and niches that are runaway stars, and which have such solid long-term fundamentals to make them easily recommendable.
Hotel room investment is a prime example. The hotel industry was hit hard by the crash, but is now recovering extremely well. Because of the losses suffered during the boom there is an abundance of opportunities to invest in hotel rooms.
For investors, investing in a room of an established hotel seems almost too good to be true. A fully serviced and managed hands-free investment opportunity, which trackers like hot-stats will give a measurement on its likely revenues, with many coming with free usage, guaranteed rental yields and guaranteed 125-150 percent buy-back in 5-10 years.
Student property is another favourite at the moment, for much the same reason. Most deals offer hands-free investments with easily managed and measured yields. Student property investments will usually be part of the mainstream accommodation for one or more universities or colleges; this gives an established pool of renters and allows investors to all but guarantee their occupancy and yields.
Then you have the abundance of low priced residential property investment opportunities on the market, including thousands of distressed and repossessed properties in the UK and millions in the US. The repossessions increase rental demand as well as the number of cheap properties, so you have potential for strong rental yields and capital appreciation.