apt for rental vs house for refurb vs building house

[Thrifty05]

Hi i am in a position where accomodation is provided through my work but i would like to get on the property ladder through some type of investment - i have three options and am not sure which one to run with in the new year and being green was looking for advice.
Option 1 - is buying a house or apartment and renting it out which is a long term investment,
Option 2 - is buying a property in need of refurb / repair and selling it on when complete (do have some experience in this area),
Option 3 - is buying a site, building a house on the site and selling it on.

I am aware that the last two options are more time intestive but i would be prepared to invest the time if the return was worth it. Can anyone offer me any advice on what would be my best and most profitable option??

 

[#paul#]

I would go for option 3 if you can get PP which is easier said than done. Depending on where you are planning to develop there may be an owner-occupancy clause of upto five years imposed by the local council which may be important to consider if you are planning on selling on completion of project. If you have experience in property renovation, would you not consider combining option 1 and 2, ie develop an existing house for rental purposes?

 

[RainyDay]

If you don't have enough experience to know when you're being ripped off by builders, I'd avoid options 2 or 3.

 

[Ravima]

If going for option 1, then a friendly builder once todl me that you should own the house and the ground it is built upon. if you go for a house, then it is all yours. If an appartment, you have management charges wevery year, which are beyond your conrtol. At least in a house, you can control the insurance costs, by increasing excess or reducing sums insured, you can put the refuse charges onto the tenant. If an appartment, yo ucannot do any of the above. Havin gsaid that, there are benefits too to the appartment in tha you do not have the hasle of insuring or dealin gwi h refuse.