Best investment strategies for Long run - A flat @ London or a HMO? Or holiday cottage in rural scenic part of uK?

[skuml]

Hi there,
I am working out our next steps for investments - Wondering what is good to buy in high interest environment? Trying to create a cash flow portfolio or an investment that we can pay off other mortgages in future.

• Is it better to a flat in London? ( I do have experience in renting out flats & managing).

due to high interest rates, rental return yield is very low on any flats( I am looking in our local area... ). Also, Flat's prices are not increasing much

• I noticed few houses converted to flats - are achieving better returns ( if we do the conversion ourselves) . has anyone done this?

• Also, there is strong demand of good executive rooms/studios in our area...

Would HMO ( targeting executives) a good idea??

I love notion of holiday cottage but my not sure returns on that. And I do like properties near my vicinity so that I can manage myself!

What suggestions or learning from your experience what would be best strategy?

Many thanks

Any suggestions?

Not a holiday cottage. The market is swamped, cleaners are expensive £15-20 an hour. A two - three bed place takes 3 hours to clean and then there’s the laundry costs on top. There are many empty weeks. Long weekenders want Friday to Monday but week stayers want Saturday to Saturday.

Thanks! Yes holiday cottage and airbnb flats might have same problem - ! Too much hassle to maintain... Plus if I am not nearby then I will have to agents to manage it!

Wondering anyone has experience in refurbishing flats, covering houses into flats in London - how was your experience?

The advice from all IFAs is pretty.much get.out of property

Have you looked at dividend paying investments?
If you combine isa and capital gain allowance you can do a fair bit before incurring tax

You’d be better off asking on a landlord or investment forum.

None of those
Renting is not as profitable as it was and many LL's are getting out.
Each of your options there comes with a set of issues that may not make it worth it at all.

I’d argue that no property investment is particularly good in a high interest environment, particularly if you need to borrow money.

In London in particular rents are tiny compared with the cost of servicing and equivalent mortgage.

How much cash have you got to invest? A financial advisor is probably your best port of call.

THanks all for you replies!

I cant invest so much money in equity/shares or bond. And Looking for safe assets that can give steady income- thats why was thinking about buying another rental flat.