If you're going to invest in property then consider where you think your revenue stream / profit is coming from.
If you are investing to simply sell at a profit in a rising market then you're a braver man than I.
If you are investing to change/improve and then sell at a profit, then I hope you're a builder. (Yes, I know MD is one) because you'll need the expertise. Of course I know it seems like the bigger the change/improvement the higher the cost but the greater the opportunity for profit, but a good builder will spot stuff that looks like hell but that can actually be cleaned up pretty easily and cheaply before being flipped.
If you're investing for rental income then that seems the 'safest' option to me. And if you don't mind the work, buy at the cheap tatty end. Combining a cheap acquisition, some cosmetic work and then renting out can lead to attractive returns.
The last market to die is going to be the single younger person living in a cheap rental. Also, many cheaper properties is safer than fewer more expensive properties. It can be a lot more tax efficient as well. As I said, providing that you don't mind the work.
As for commercial properties, I wouldn't touch it with someone else's barge pole. Far, far too difficult, too changeable and too uncertain at this time. And I'd say that there is a glut. IMO only attractive from a risk/reward perspective if you're playing with money you can afford to lose or that belongs to someone else.
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