When you think about investing in property, the chances are that your mind turns to buying a house to rent out, with the rent paying the mortgage and the value of the property rising so that in the future, you could sell it and use the proceeds as your retirement fund. Or potentially, you have watched a lot of Homes Under The Hammer style programmes and like the idea of flipping houses; buying properties that need work, doing them up and selling them on for a healthy profit.
But did you know that there are plenty of other ways that you can invest in and make money from property?
Off-Plan New Build Purchase
You may be able to negotiate a good deal on an off-plan new build, buying it before the build is complete and adding value by decorating and finishing it to a higher standard than the regular new build. This could make you a healthy profit if the value increases from the price that you paid once it is ready to sell.
Overseas Property Investment
If you enjoy overseas holidays, you could achieve a double benefit by buying property abroad, holidaying in it and renting it out when you are not using it. If it were to increase in value, you could also make a profit from selling it in the future.
Real Estate Investment Trusts
Real Estate Investment Trusts are companies that invest in property, making their money predominantly from rental income. You can buy shares in these companies and make money from either selling shares when the price is high or from receiving dividends. This offers a reasonably low-risk way of investing in property, investing a much smaller amount than you would in buying property by yourself.
You could also invest in property bonds, buy shares in companies that own listed properties or put money into a property ISA.
Property investment always comes with risks and plenty of costs to consider as well. There is a risk with any property that you buy that more work will be needed than recognised at the outset, and if you are unfamiliar with the area, you may be unlucky selling it on, meaning that you will need to pay the mortgage for longer than planned.
One example of an area worth considering is Rugby, where the property market has shown a marked increase in prices over the last 12 months. If you decide to invest in property, you will need to choose an appropriate firm to undertake your conveyancing Rugby and as you plan to make a profit, choosing a firm that offers a fixed-price service may help with budgeting.
The sooner you get the property turned around, the quicker you will see a return on your investment so choosing an online conveyancing firm such as Sam Conveyancing can help shorten timescales as the work will be allocated to a licenced conveyancer with the capacity to engage wholeheartedly in the process for you.
It is possible to make good money by investing in property, but you should always go into the process with your eyes open and be prepared to take a long-term view of your investment so that you are not disappointed if it takes longer to see a return than anticipated.