Buying investment property on a long term is a little trickier to find, but when you do, they are absolute gems. Of course, the maintenance is going to be a major consideration. The chances of replacing the roof on a ten or twenty-year property are much higher than on a five-year property.

Next is location, which is key and cannot be overstated. Explore the neighbourhood; what shape are other dwellings in? Do your potential neighbours take care of their properties? Are there schools and parks or businesses and commerce? By doing a proper demographic, you will be able to make a wise investment.

Now let’s consider land investment. While it might be more appealing because you don’t have the responsibilities of a building, location becomes the major factor and time runs a close second. What surrounds or borders the land? If it is in a commercial or development area that is active or signs are up advertising a start and finish date then chances are you will be able to sell your investment in the short term. Land in a residential or rural area might take a little longer, but can be a good investment for the long term.

Bargain Property

The UK property market downturn has led to an unprecedented number of repossessions and distressed properties coming on the market. This has opened the floodgates for bargain properties. But it is still up to you, the investor, to do your homework before finding and investing in bargain properties.

There are many properties that may appear attractive on the surface but have underlying issues that can become problematic very quickly. The other element that has come through the gates is less reputable property investment companies. They have popped up all over the web and have caused many investors huge and often unrecoverable losses. These investment scammers promise all kinds of things, instant wealth, overnight financial security, you name it, they’ve promised it.

Bargain properties normally end up costing you money, especially when your investment needs to start paying for itself. If money is tight then here is a list of areas that will show you which postcodes represent the cheapest property in the UK

Monetising your new investment property

Long-Term Rentals

Until recent legislation changes, this has been the go-to for most property investors. The Renters’ Rights Act 2025 has now given tenants many more rights, prompting many landlords to seek alternative revenue streams. Basically, the Act limits how much a landlord can increase the rent. More here.

Short-Term/Holiday Rentals

This has become progressively a more popular options for investors that have suitable property. Whilst short lets command a higher rent, they also come with some drawbacks. One is you have to advertise and deal with tenants on a weekly or monthly basis. Whilst perfect for some landlords, most property investors turn to what are called ‘Airbnb Management Companies’ like Ovitzia. These companies charge between 5 – 12% and will be as hands on or hands off as you like. Service levels vary but the commission rates are pretty similar.

Asset Monetisation/Secured Funding: You can use your UK investment property as collateral to secure funding for other investments and grow your portfolio in this way. Red Hat Capital explain the process here.

How much do I make?

With all investments, it is impossible to predict. The advantage of property investments is that they offer both capital appreciation and a rental yield. A good rental yield in London is around 4-6% of the property’s value. So if your £250,000 2 bed flat cannot command a rent of £1500+ then you might want to think again. It all depends on postcode, location and demand. Cheaper properties are cheap often because rental values are low. So a £100,000 3 bed house up North is that price for a reason. See Is Being A Landlord In London Profitable? byJ Property Management.