What type of property investor are you?

Have you considered what type of property investor you are? Andy Foote, Director of Seven Capital, has outlined four different types of property investors. 

The hassle-free, hands-off investor
“If you want to invest and have a tenant move in straight away or you’re specifically looking for a steady passive flow of income from rental returns, then a new build or ready-made property, managed by an agent, is probably for you. Many investors fall into this category – it means little extra expenditure required on the property once you’ve bought it, bar general maintenance, and you can entrust an agent to keep a check on the condition of the property and the rental payments coming in while ensuring there is a good tenant in occupation.”

The Buy, Refurbish, Refinance (BRR) investor
“Not so much actual cranes here, but a similar sentiment in terms of putting in some work. For investors who want to pay less and are willing to get their hands a little dirty in order to increase the value of their property quicker, then the BRR route is an option: buy an un-modernised property, refurbish it, refinance it – not necessarily to achieve a better rate, but to get cash, or equity, out of the property,” 

The cashflow is king investor
“The benefits of being able to rent to a higher number of people in a shared house often includes being able to achieve higher rents and yields collectively, however this can be a very transient market, so it’s not for the investor who likes to sit back and steadily collect a passive income.”

The capital investor
“You might be the type of investor whose main priority is earning capital, not necessarily through BRR, and for whom rental income is a plus – whether that’s through regular rental returns or as a holiday let. If you’re a cash investor, you may fall into this category, as well as perhaps BRR or hands-free, with the main objective being to safeguard and grow your wealth over time,”

Dawn Clarke
Lettings Director
07967 209011 
[email protected]

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