
As we step into a new year, many property investors are evaluating their strategies and considering a change in direction. After all, being a property investor is a journey, not simply a destination (writes Howard Reuben, Principal, HCH Financial Services).
Having spent over 20 years as a portfolio property investor, I’ve learned to approach property investment as a business rather than an emotional endeavour. While being a landlord is inherently part of the role, I’ve focused on detaching emotions and prioritising the black-and-white perspective of profitability.
A business-first approach to property investment
Throughout my career, I’ve managed AST properties, holiday lets, houses, flats, and more. I’ve bought, held, upgraded, sold, and actively managed daily tasks – always keeping profitability as the primary goal. Whether the returns come from capital growth or rental yield doesn’t matter; what matters is that the strategy aligns with the goal of generating income and achieving a strong return on investment.
If your rental income or property profits are declining, it’s time to assess your options. Many property investors are pivoting their strategies, switching from standard buy-to-let (BTL) properties to HMOs (houses in multiple occupation) or holiday lets. Limited company structures have gained popularity – not just for tax efficiency but also for streamlined succession planning.
We’re also seeing a trend of investors moving away from central London to areas offering better yields. Even seasoned holiday let investors are exploring new strategies or reinvesting in alternative assets to adapt to the market.
The importance of strategic planning
Change in direction doesn’t happen in isolation. It requires deliberate planning and the support of a trusted team of experts. As a mortgage broker, I’ve seen countless swings in strategy, and the common denominator for success is preparation.
Whether you’re starting a new property project, diversifying your portfolio, or switching investment strategies, take the time to:
Review your goals:Â understand what you want to achieve in the short and long term.
Assemble your power team:Â work with experts who specialise in property investment:
A property tax adviser with expertise in landlord and property investor accounts.
A professional mortgage broker experienced in BTL, HMO, commercial finance, holiday lets, and serviced accommodation.
An insurance adviser who understands non-standard properties, portfolios, and short-term rentals.
Avoid common pitfalls:Â ensure you have the right mortgage contracts, insurance arrangements, and tax plans in place. Overlooking these can lead to significant issues down the line.
A clear vision for 2025
As we move into 2025, it’s the perfect time to reassess and realign your property investment strategies. Our collective aim as property investors is to build peaceful, profitable, and sustainable businesses. With the right guidance and resources, you can achieve just that.
Let’s work together to make this your most successful year yet. At HCH Financial Services, we’re here to provide expert advice and connect you with the best products and services to support your goals.
Contact us today for a new year, new start, or a fresh review of your direction. We look forward to partnering with you in 2025 and beyond.
Call: 0333 1234 536
Email: advice@hchfs.com
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