Top 10 Safe Investments with High Returns in August 2024

If you’re seeking solid returns with lower risks, then investing in property is likely your best bet.

Residential buy-to-let is probably the first strategy that comes to mind, but investing in student accommodation will offer many investors the chance to grow their money more than they could with other investments.

The growth potential with student property investment can be much higher than other strategies. This is because landlords can make bigger returns by renting per room to individual student tenants rather than renting a whole property to one or two occupants or a family.

On the other hand, real estate investors may worry about long void periods when considering student accommodation. But the higher rental returns can make up for this, and by choosing a location with a big student population, demand will be almost guaranteed.

But if you think student property isn’t for you, there are multiple ways to get involved with property investment as a beginner and several strategies to help lower the risks.

Depending on your personal financial situation, risk tolerance, and the property type you choose to engage with, investing in property could potentially provide you with more lucrative returns and fewer risks than you’d see in many other investment strategies – so long as you play your cards right.

Another way to keep your property investment low-risk is to invest in a high-yield area. The rental yield can be calculated by dividing annual rental income by the property’s value and multiplying by 100 to get a percentage. This is a useful figure to look at when trying to get an idea of potential returns on an investment.

Cities and towns with higher rental yields can be considered lower risk for investments because you will start to see returns much quicker. In the current property market, cities in the North of England, such as Liverpool and Manchester, generally have higher yields than in the South.

For those seeking a larger return from their property, getting into short-term lets will typically offer higher returns.

However, alongside this, investors may also see a higher level of risk.

Those who stay in a short-term let, like those found on Airbnb, will usually pay significantly more in comparison to some other property investment strategies, such as residential buy-to-let, but investors can still lose out if proper research isn’t done beforehand.

Firstly, it’s important to research local laws for short-term lets. Next, finding the right location is key. If the area isn’t very popular with visitors and holiday-makers, there will be long void periods when the property is generating any returns.

It’s important, then, that investors focus on the most popular locations for short-term letting. Short-term lettings are a lucrative property investment strategy that can be low risk despite the reputation of having greater overall risk towards your investment.

A standard residential buy-to-let is often considered one of the most popular property investment strategies. It can be called a lower-risk investment due to the historical performance of this type of investment in the UK over the past two decades and the high demand for rental properties across the country.

There is a great potential for lower-risk and long-term returns for those who partake in residential buy-to-lets, with rising capital value and rental income.

If these perform well, then they have the potential to grow at a faster rate than typically seen with some other property investment strategies.

As with any investment, the value of an asset might skyrocket unexpectedly, bringing in huge returns – but the same is true with the opposite. There is always the possibility that the property market can underperform compared to previous years.

It’s vital, then, that investors make sure that they’re smart with how they play their strategy and take care to ensure that they’re comfortable enough (if anything were to go wrong) to hold out until the overall situation changes. Looking at general trends for property in the UK, the market has proved itself resilient, even after various economic ups and downs, making it a low-risk strategy for long-term investors.

As they are more compact than usual one-bedroom apartments, Manhattan apartments are much more affordable to start investing in.

Another upside is that the compact design of these apartments makes them more energy efficient, lessening the risk of needing eco upgrades in the future.

The downside of investing in a Manhattan apartment is that rental income can be lower, as the rent reflects the smaller size of the apartment. If this is a concern, it may be best to consider an alternative low-risk investment strategy. However, if the apartment is located in a prime area, the rent will be enough to generate high returns.

If you’re seeking a safe long-term investment with relatively low risks and strong growth potential for high returns, then UK buy-to-let property is one of the best strategies to consider.

With over 20 years of experience in the property investment sector, RWinvest Property Investors are one of the most celebrated and respected names in the UK when it comes to investing in property.