Buying property can be more than just finding a place to call home. Most people have to do a real estate transaction at some point in their lives, and some find it an intriguing opportunity for capturing and creating revenue.
Property investment can be a profitable income stream. It is a great tool to invest in as returns are usually positive if prior due diligence is conducted correctly. For those new to investing in property, it is vital to understand your long-term financial goal before starting out. In this article, discover what property investment is and some of the different strategies of real estate property investment.
What is Property Investment?
Property investment involves the purchasing, ownership, management, and sale of real estate or rental property. These may be commercial buildings, homes, offices, city buildings, and HMOs. Depending on the investor, this property can either be sold for higher profit-making or managed and owned for monthly rental income.
Real estate investment can be done from small scale to large scale. For instance, you can buy a BMV unit in or around London and develop the property into a lar unit for re-sale and better profit. Alternatively, you may own the small unit and rent it while using the revenue stream to develop or purchase the next one.
Property Investment options include:
- Purchase of property for rent.
- Building property for renting or for resale.
- Refurbishing a property for resale.
- Real estate investment trust/crowdfunding.
- Renting a residential property and turning it into a Serviced Accommodation unit.
A common option of property investment is known as Flipping. This involves purchasing a property below market value, refurbishing/ modernising it and then selling it at a profit. This method is very profitable to investors because traditional homebuyers look for a property that is ready to move into. Property investment does not only refer to buildings, but also land and development sites. Many investors survey the most profitable use of property in an area before investing.
Benefits of Property Investment
Property Investment is one of the best ways to invest your money, as it attracts long term and stable returns in comparison to other types of investment.
The return may take a while, maybe due to repayment of bridging loans used for construction and purchase but in the long-term, the returns will be stable.
When it comes to Property Investment it’s good to buy low and sell high. The markets do easily fluctuate and it’s good to be aware of any new trends.
Property investment can also provide steady cash flow, substantial appreciation, tax benefits and more.
Whether you are an investor of ours or not, feel free to get in touch. We can help you find your first or next investment property and provide any advice along your property investment journey.