I’d shun buy-to-let and buy these property stocks instead

first_img Our 6 ‘Best Buys Now’ Shares I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. “This Stock Could Be Like Buying Amazon in 1997” Alan Oscroft | Tuesday, 18th February, 2020 | More on: GRI UAI Image source: Getty Images. Enter Your Email Addresscenter_img See all posts by Alan Oscroft In December, I liked the prospects for Grainger (LSE: GRI) after seeing the shares gain 47% over the year to date.At the time, I found the UK’s biggest listed residential landlord attractive for the long run. But I felt the shares might be a bit toppy after their 2019 performance. Well, since then, the price is up a further 11%.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…That includes a solid gain over the past week, on the back of a successful share placing that raised £186.7m. The placing was at 305p per share, and the price is now at 338p. Those who subscribed are already sitting on a nice profit.AcquisitionGrainger seems to be making the most of weakness in the property market, and announced a new acquisition on Tuesday. The company is set to forward fund and acquire a 348-home build-to-rent development in Nottingham. It’s on an old rail side site, and is going to cost £55.6m. It’s Grainger’s first property in Nottingham, and it apparently rates it as a key target city.This latest acquisition looks like it’s part of a fairly aggressive growth policy from Grainger, coming on the back of news of other expansion deals since the firm’s full-year results were released in November. And I do think it’s coming at a good time.If you want to earn profits from the residential rental business, I see Grainger as a considerably less risky approach than the individual buy-to-let business. And I think it could be a good long-term buy.I’m just a bit wary of the stock’s valuation right now, and I want to see its next net asset value figures first.Property dividendI’m also drawn to property developer U and I Group (LSE: UAI), whose shares are on significantly lower P/E valuations. The firm specialises in regeneration, putting up new commercial rental real estate amid public developments.Just a few days ago, Manchester City Council decided to grant planning permission for the first phase of U and I’s Mayfield project in Manchester. The development will create, in addition to a public park, two office buildings plus a 581-space car park. U and I expects the 15-year scheme to deliver £40m-£60m in profit, plus around £40m in development management fees.Again, this is just the latest in a string of announcements of similar developments, including a project in Lambeth expected to provide £25m-£35m in profit, and a mixed use development at Swanley Shopping Centre in Kent which includes residential space and another car park.UndervaluedGiven the nature of the company’s long-term developments, earnings are erratic on a year-to-year timescale. Based on forecasts out to March 2022, that puts the shares on P/E multiples from as low as 7.8 up to 13. Dividend forecasts are strong, yielding around 5.4%.If you’re considering buy-to-let, you’ll presumably be expecting ups and downs in your earnings too. Rental voids, maintenance, and other costs mean it’s really a pursuit for those with a long-term horizon.But I think you’d be pushed to match the yields from U and I, consistently and with relatively low risk. Oh, and with no effort on your part. Simply click below to discover how you can take advantage of this. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. I’d shun buy-to-let and buy these property stocks insteadlast_img