If you have an amount of capital to invest and are looking for a secure and substantial return on your money, then property investment may be the best choice for you. Whether you intend to do up a wreck or reap the benefits of buy to let, an investment in bricks and mortar can yield a far greater return than letting the banks or the stock market take care of your money.
Many potential investors choose to look into auction properties as a good starting point. Auctions can allow you to secure a commercial or residential property investment at a knock down price, but it is a marketplace that should be approached with caution and sensibility to ensure your investment (and your bidding) does not get carried away.
Another popular investment market is the BMV property or below market value option. These tend to be properties which are marketed for a quick sale at less than their actual value, usually as a result of their current owner struggling with financial problems of their own.
These properties are few and far between, but if you do manage to find one don't just jump in feet first. Check the price of other similar properties in the area to make sure you are getting the bargain you've been promised and take the time to have a survey done to check there aren't major structural problems which have led to the price being so low.
If you are willing to haggle, then buying 'off plan' can also be a great way to invest your cash. Off plan properties can be discounted by as much as 40%, especially if the developer has just a few units left to sell. It is critical to spend some time researching the market value of the property before accepting the sale to ensure you really are getting the discount your developer says and that it is not just another marketing gimmick to encourage you to sign.
If you are making a residential property investment you may be tempted by the 'guaranteed rental' schemes available from many letting agents. This essentially means that you will get paid the same amount every month, regardless of whether your property is tenanted or not. Some of these schemes are actually a very good way to ensure you get a consistent return on your investment but many are merely a marketing tool, so ensure you investigate all the fine print prior to making a commitment.
Another popular marketplace for investors is commercial property investment, mainly because there are so many levels of investment available to choose from. Smaller investors can buy a share of an office space in order to receive a proportion of the income it generates, whereas larger investors can purchase an entire property to convert into a commercial space.
Middle investors can consider everything from buying tenanted public houses or guest houses to commercial property investment in shop space which they can refurbish and rent out. Whatever it is you are considering, be sure to instruct a specialist solicitor to guide you through the legal minefield as this type of investment can be much more complicated than the residential market.
Many potential investors choose to look into auction properties as a good starting point. Auctions can allow you to secure a commercial or residential property investment at a knock down price, but it is a marketplace that should be approached with caution and sensibility to ensure your investment (and your bidding) does not get carried away.
Another popular investment market is the BMV property or below market value option. These tend to be properties which are marketed for a quick sale at less than their actual value, usually as a result of their current owner struggling with financial problems of their own.
These properties are few and far between, but if you do manage to find one don't just jump in feet first. Check the price of other similar properties in the area to make sure you are getting the bargain you've been promised and take the time to have a survey done to check there aren't major structural problems which have led to the price being so low.
If you are willing to haggle, then buying 'off plan' can also be a great way to invest your cash. Off plan properties can be discounted by as much as 40%, especially if the developer has just a few units left to sell. It is critical to spend some time researching the market value of the property before accepting the sale to ensure you really are getting the discount your developer says and that it is not just another marketing gimmick to encourage you to sign.
If you are making a residential property investment you may be tempted by the 'guaranteed rental' schemes available from many letting agents. This essentially means that you will get paid the same amount every month, regardless of whether your property is tenanted or not. Some of these schemes are actually a very good way to ensure you get a consistent return on your investment but many are merely a marketing tool, so ensure you investigate all the fine print prior to making a commitment.
Another popular marketplace for investors is commercial property investment, mainly because there are so many levels of investment available to choose from. Smaller investors can buy a share of an office space in order to receive a proportion of the income it generates, whereas larger investors can purchase an entire property to convert into a commercial space.
Middle investors can consider everything from buying tenanted public houses or guest houses to commercial property investment in shop space which they can refurbish and rent out. Whatever it is you are considering, be sure to instruct a specialist solicitor to guide you through the legal minefield as this type of investment can be much more complicated than the residential market.
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