How to invest and get a bargain this summer in a red hot property market

 
How to invest and get a bargain this summer in a red hot property market [Photo: G0d4ather via iStock]

Rental investment is red hot, and has been for some time across the UK, as the rise of the so-called 'generation rent' and the demand they have helped to promote has meant a growing number of investors looking to get themselves a piece of the buy-to-let pie.

This summer is likely to be no different, with landlords going head to head to secure the best rental homes and prices rising quickly as a result. But for those looking to get themselves onto the ladder without having to spend so much, what's the best way to secure a bargain? Here, we take a look at just a few strategies for getting rental homes that little bit cheaper.

New build blocks

One of the very best ways to get a good deal as a buy-to-let investor is to look towards the booming build to rent sector, where stock can be acquired at prices far more favourable than on the open market. 

In many new build scenarios, off-plan strategies means the developer needs to secure a certain number of sales to help finance the project, and for this reason, they will more often than not offer early investors the chance to get in on the deal for a good price. It's a great way to secure a bargain when investing in a market that's likely to be red hot all summer, and in many cases you will be able to get yourself a property for as much as 20 per cent below market value, leaving far more scope for strong long-term returns. 

Renovate

It's tempting to buy homes in the currently booming property market that are ready to list and find a tenant for straight away. With prices and demand as they are, it's only natural. However, bargain hunting investors can look towards a more savvy strategy with more potential for saving money, and seek out homes that need a bit of love before they're ready to go to market. 

Properties that need some renovation work carried out on them can be available at prices far lower than they would be on the open market in a better state, and if investors can calculate how much it would cost to bring them back to livable standards, it can often make much more sense to look at properties that need renovating in order to save money and get a bargain when looking for rental homes. 

New areas

Another strong tactic for investment in bargain rental properties can be to look in places no one else has yet, to find those leftover homes that have yet to be snapped up by the rental sector. London is a no go in this regard, while places like Brighton have seen prices of property climb by a staggering amount in recent times. But the reason for this is simple - popular areas mean high prices. Looking at areas with potential for strong rental growth, but little activity so far, can be a much better strategy. 

Places in the home counties, for example, can be a good place to start, while more rural areas slightly further out, which have the potential draw for commuters in the future, give a real opportunity to invest somewhere with a strong future but for a bargain price, which is always important when the market is as red hot as it's likely to be this summer.