The hottest real estate investment strategy for 2022 …

Real estate investment company Advantage Investment explores the effects of Covid-19 on real estate investing and lists the benefits of investing in vacation rentals.

From a business perspective, Covid-19 has had devastating effects on many industries in the UK, such as hospitality and travel, which have been severely affected by the lockdown and travel restrictions. However, some industries have also profited massively from the pandemic.

Besides the obvious increase in revenues for PPE and pharmaceutical companies, technology companies offering remote work software such as Zoom and e-commerce companies such as Amazon have made big profits.

Meanwhile, the real estate industry has embarked on a strange adventure that even the best experts could not have foreseen. The initial anticipation of a real estate crash never materialized, with the introduction of stamp duty holidays contributing to an 8% annual rise in house prices. Some buyers have been able to save up to £ 15,000 in stamp duty, ensuring the property market has remained strong throughout the pandemic.

How real estate investing has been affected by COVID-19

The pandemic has brought about a variety of outcomes for different types of real estate investors. The ban on tenant eviction has resulted in the loss of rental income for many rental landlords. Rising home prices have also made it more difficult to earn a profit by buying a property to rent it out, but the stamp duty holiday has given buyers a big window of opportunity to add new properties to their portfolios while at the same time. avoiding paying the usual tax.

Vacation rentals have become very lucrative investments

With overseas travel restrictions and health concerns associated with overseas travel, the majority of UK holidaymakers have taken breaks in the UK, rather than missing their holidays. Areas such as the Lake District and Cornwall have seen a huge increase in bookings and searches for accommodation throughout 2021, with some vacation rental companies seeing a more than 40% increase in bookings in the summer of 2021 .

National holiday experts predict that UK holiday demand is here to stay, at least for the next 4-5 years, opening up lucrative investment opportunities in holiday property rentals. In addition to taking more bookings, many vacation accommodation owners and businesses have increased their prices to maximize the opportunity they now have in their hands.

Choosing the best holiday accommodation for renting

For people who want to take advantage of the UK vacation trend, there are plenty of lucrative opportunities. Which choice is best for you will depend on a number of factors including how much capital you have, how quickly you want to see returns, and how long you want to be tied to the investment. Another important consideration is the effort that will be on your part, as some investments allow you to invest and take a step back, while others will require a lot of time and input.

* Advantage Investment specializes in finding the best real estate investments specifically to meet the needs of its clients.