If you’re considering which investments are the best options for your money in 2024, this article breaks down key considerations for the coming year.

As we kick-start 2024, it’s always a good idea to assess your portfolio’s performance and look at ways to improve or adapt your investment strategy to set it up for success in today’s market conditions.

Alongside determining your investments’ overall financial performance, there are additional considerations. For example, are you spending too much time managing your assets? Are you charging the current market rental rate? Or is it time to remortgage your asset to release funds? These are just some of the questions you should ask yourself before investing in your next venture.

At Fabrik Property Group, we offer 1:1 consultations with our award-winning team of property consultants, who can help you navigate today’s market conditions and find investment opportunities to help you meet your financial goals.

Understanding the Shifts in the Property Market

No matter where you decide to invest your money in 2024, it’s important to stay up-to-date with the latest news and trends which could affect the performance of your assets.

This is particularly true when investing in property, so let’s take a moment to understand the current state of the UK’s property market and what could be on the horizon over the next 12 months.

With a global pandemic, Brexit, and political and economic uncertainty, the past few years have been somewhat of a rollercoaster.

However, despite these hurdles, the UK’s property market has shown impressive resilience, indicating a positive outlook for the coming year.

The latest data from the ONS has revealed that the average UK house price was £288,000 in October 2023, marking a slight dip of -1.2% year-on-year.

With interest rates reaching 5.25% in 2023, it is no real surprise that property values have taken a slight hit, as more homeowners (especially first-time buyers) are priced out of the market.

However, it is worth noting that not all areas saw values dip in 2023. Regional hotspots like Manchester, Birmingham and Liverpool have continued to show their resilience, all posting positive growth throughout last year.

On face value, rising interest rates and relatively muted growth don’t paint a positive picture for investors; the cost of renting across the UK reached new highs in 2023.

The latest HomeLet index has shown that average new tenancies were up by 8.9% in the year to November 2023. And with demand for Buy-to-Let set to continue to outstrip supply, investors will continue to have the opportunity to secure robust returns from rental property in 2024 and beyond.

One of the main appeals of Buy-to-Let property over other investment types is its ability to rise in value over time and deliver a monthly income. Plus, the tangible nature of owning property makes owning a rental asset more appealing for those who are more risk-averse or unsure of how to invest in stocks and shares.

View our latest income-generating property investments.

Opportunities in the Rental Property Sector

Residential Buy-to-Lets have been a popular choice for investors for a long time, and for a good reason.

Over the last 70 years, average UK property values have increased by 365% and even with the current economic headwinds, the 5-year outlook remains robust, with average values forecast to climb by +17.9%, with regions in the North of England set to outpace the national average.

Read more: 5-year house price forecast.

Despite the shifting landscape of the property market, the appetite for rental properties remains strong.

However, it’s worth remembering that not all rental properties are created equal. The key to success lies in discerning the best locations that align with tenant demands in terms of geography and property type. From the stylish urban flat to the spacious suburban house, understanding what renters want is fundamental to your investment strategy.

Consider also the potential for long-term rental contracts, offering a reliable and regular income stream. While the short-term rental market can be profitable, especially in popular tourist areas, the reliability of long-term tenants should not be undervalued in a balanced portfolio.

As with any investment, careful planning, strategic choices, and a deep understanding of market trends are needed to maximise returns. So, whether you’re a seasoned property investor or venturing into the property market for the first time, Buy-to-Let is undoubtedly one to watch in 2024.

Book a 1:1 consultation with Fabrik Property Group.

Capitalising on the Popularity of Short-term Rentals

The world of short-term rentals, fuelled by platforms such as Airbnb, is flourishing and displaying no signs of slowing down. As we approach 2024, these rentals present a simple way for investors to diversify their portfolios.

Tourist hotspots, in particular, are seeing an uptick in demand for short-term rentals. With the right property in the right location, investors have an opportunity to tap into this booming market and secure higher-than-average returns.

However, the charm of short-term rentals doesn’t end at high potential yields. They offer a flexibility that’s hard to match. Should the short-term market experience a lull, the property can be seamlessly transitioned to a long-term rental, safeguarding your income stream. What’s more, it’s easy to offload this type of asset using a traditional real estate agent.

The appeal of ‘staycations’ across the UK is showing no signs of slowing down, so capitalising on this trend offers a way to boost your returns throughout 2024.

But while the opportunities are plentiful, the short-term rental market also requires diligent management. From handling bookings to ensuring top-notch guest experiences, it’s a hands-on venture. Property management companies specialising in short-term rentals can take this load off your shoulders for a fee.

Investors should also be aware of local restrictions that could prevent them from renting out short-term.

Advantages of Investing in Alternative Property Assets

As the property market continues to evolve, alternative property assets have emerged as a novel way to add diversity to your investment portfolio, a tried and tested method of mitigating risk.

Off-plan property investment, for instance, can offer an attractive alternative, allowing investors to spread the cost and secure off-plan pricing. This investment strategy often delivers assured returns, making it an appealing addition to your property portfolio.

Purpose Built Student Accommodation (PBSA) is another low-entry option that can generate higher rental returns. Its 0% Stamp Duty rate adds to its allure, providing an attractive incentive for investors.

Meanwhile, holiday lets, such as a fully managed Lodge Investment, present a straightforward opportunity to capitalise on the UK’s booming staycation trend.

For those seeking residential assets in the secondary market, Houses in Multiple Occupation (HMOs) offer high yields, making them a worthwhile consideration.

Though management can be slightly more involved, the financial rewards can be significant. It’s worth noting that you’ll need to ensure that the property meets regulations and that there are restrictions in place which vary from council to council.

Read more: Everything you need to know about HMO licenses.

Finally, commercial properties are yet another diversifying option, providing a mix of steady income and potential for capital growth. These alternatives can effectively balance your portfolio, complementing traditional property investments while boosting overall returns.

As 2024 approaches, consider broadening your horizon to include these alternative property assets.

How Does Property Compare to Other Investments?

Pitting property against other investment vehicles, such as stocks and bonds, brings a fascinating contrast into focus. Each of these investment options comes with its distinct set of advantages, and they cater to different financial goals and risk appetites. However, what sets property investment apart is its unique blend of consistent income and the potential for long-term value appreciation.

Whilst offering potentially higher returns, stocks are notoriously volatile and can be significantly impacted by economic conditions. Therefore, they might cater to those with a higher risk tolerance and an appetite for potentially quick gains. Conversely, bonds are traditionally seen as a safer bet, offering steady returns. However, their yield is typically lower, and they might not keep pace with inflation, potentially eroding your purchasing power over time.

On the other hand, property serves as the bridge between these two extremes. It provides a steady income from rental yields similar to bonds but with the added potential for capital growth that stocks offer. The inherent value in a physical asset, especially one in high demand like property, is a compelling reason for its enduring appeal among investors.

This intrinsic worth, coupled with the chance for regular income from rentals, offers a balance that few other investment options can match.

Moreover, the property market has a lower correlation to the stock market, providing a degree of insulation during periods of stock market volatility. It’s worth noting, however, that just like any investment, property isn’t risk-free. It requires careful research, strategic decisions, and sometimes patience to realise its full potential.

As 2024 beckons, it might be worth considering property as a key player in your investment portfolio if you have not already done so. Its unique blend of steady income and potential capital growth, balanced with an element of stability, sets it apart from other investments, making it a worthy contender in the financial arena.

What about Bitcoin?

Bitcoin is a digital currency, also known as cryptocurrency, which operates independently of a central bank.

Its inception in 2009 marked the dawn of a new era of decentralised finance, making waves across the investment landscape. However, Bitcoin’s price can fluctuate wildly within short periods and is well-known for its infamous highs and lows.

This extreme volatility can present lucrative opportunities for those willing to stomach the risk. Still, it also raises the potential for significant losses.

As we approach 2024, it’s crucial to remain aware of this volatility if you’re considering dipping your toes into the cryptocurrency market. While Bitcoin’s digital allure might be enticing, it’s vital to understand that investing in this realm requires a high-risk tolerance and a strategic approach to managing potential pitfalls.

Evaluating your Investment Options

The investment landscape of 2024 is brimming with options, but the decision to venture into any investment should be driven by careful consideration. It’s essential to start by establishing investment objectives. Are you seeking quick returns, or do you have a long-term perspective? What’s your risk appetite like? Are you comfortable with the fluctuations of the market, or do you prefer a more stable investment route?

Time plays a critical role, too. Consider your investment horizon – the length of time you plan to keep your money invested before you need to access it. A long-term approach generally allows you to take on more risk, as you have more time to recover from potential losses.

Additionally, it’s vital to gauge how much time you can dedicate to managing your investments. Property investing, for instance, can be quite hands-on, especially when dealing with rental properties. Do you have the time and inclination to handle property maintenance, tenant queries, and other day-to-day tasks? If not, you may wish to invest through a consultancy like Fabrik Property Group, which sources fully managed buy-to-let opportunities that require minimal effort from investors.

As an award-winning consultancy with an excellent-rated service on Trustpilot, our team of experienced property consultants provides valuable insights tailored to your specific needs and circumstances. They can help you navigate the complex web of investment opportunities, steering you towards the most suitable ones for your goals.

Contact us today to book a 1:1 call and to see how we can help you determine which investments are the best option for your money in 2024.

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