The Types of Investment Property in the UK

real estateIf you are planning to make an investment property in the UK, one of your primary tasks is to gather up knowledge and understand how the real estate business works. It can be daunting at first but do not fret. You’ll get the hang of it and we’ll show you how to do it first by introducing the different types of assets that you can invest on.

Type 1: Residential

This pertains to assets that can be used as residence such as homes, town houses, apartments and condo units wherein an individual or a family rents it out or buys it from you. Such properties may be intended for single occupancy or it may house more such as when your property has more units within it. Also included in this category are your vacation homes. This one often appears as a passive income as you are only most likely to rent it out when you are not using it.

Type 2: Commercial

This consists of office spaces or buildings used primarily by businesses. Such investments may cater to one tenant as in the case of an entire property or hold multiple units like that of a building with varying offices. The ultimate challenge of this investment property type lies in the location. Commercial spaces aim to be accessible and we all know assets in downtown and metropolitan areas can be pretty high although if you’d do well on it, the returns are pretty promising.

Type 3: Retail

These are assets that are aimed to provide a space for entities to sell their goods and/or services to their customers. Think about shopping centers and mall strips. They are the perfect example of this type. What make it a promising investment would be the often long lease contract period between you and your lessees. The challenge howe
ver is pretty similar to that of commercial spaces.

Type 4: Industrial

These are special purpose assets used as warehouse and storage units, production facilities and distribution centers to name a few. Be wary when buying this type because most assets have building specifications that may not cater to all of your clients. The more flexible it is the better.

Type 5: Mixed Use

This type of investment property in the UK is a combination of any of the above types and has more diversification and versatility. Think about a building with condominium units above and retail stores below it.