The current climate means that it is an opportune time for new investors to enter the property market. The stamp duty holiday means that there is an opportunity to minimise upfront costs.

If you are thinking about entering the world of property investment here are some tips to get you started.

Choose your niche

Commercial

Commercial property refers to property used for business purposes. It includes buildings such as office blocks, retail spaces, warehouses, and purpose-built student accommodation.

Usually, smaller scale investors buy stakes in commercial property and get a third-party company to manage it.

Investors then receive income depending on how long they own their share. This share is then sold to the management company when the investor wants to get rid or leave the commercial property market.

Residential property

Residential property refers to properties let to single tenants but also houses in multiple occupation.

If residential property interests you, you will need to research your demographic. I.e. if you are investing in a area with lots of families then it is likely that 2 and 3 bed houses will rent easier than a one bed house.

Choosing your location

Your niche will determine your location options. If student property is something that interests you for example, then you will need to look at areas close to universities.

You will often narrow your options down to a few. From these few options you will need to think about your priorities.

Mature markets are often a good idea. E.g. Manchester and Birmingham are mature markets, but property prices are reasonable. The best yields will come from area where demand for renting is high and property prices are low.