Top Tips To Get Started With Property Investment

One of the biggest stories of the past two years has been the intensity of the property market.

With price records being broken in all housing sectors and the market for commercial property growing steadily, plenty of people have become interested not only in finding a new house to live in but in purchasing a solid asset as an investment/

Unlike a residence, buying property as an investment is all about the return youghous can make, and there are a few ways this can be achieved.

The most direct way is to buy a property that is in disrepair, renovating and redesigning its interior before quickly selling it for a profit. However, there are also other ways to generate passive income, such as through rent, dividends or selling the land itself to property developers.

Here are some top tips to get started with property investment.

 

Know Your Goals

Ultimately, most people who are investing in property are looking for a return on their investment. However, the type of returns and how much money you can expect to make will differ depending on how quickly you want to see a return and how regularly you want to receive income.

 

Typically this takes two different forms:

  • Growth Investment: This is where a property is treated much like an asset, security or other investment; you hold it until it reaches a certain growth threshold before selling it for a profit.
  • Income Investment: Where you buy an asset to generate passive income, often in the form of rent, letting fees, dividends or lease costs.

Choose Your Type Of Property

Not all property is the same and often some properties will generate income most effectively in different ways.

Considering buy-to-let investment property, investing in new builds or overseas property investment can potentially provide a windfall. However, it is important to know what the risks are before you start.

Consult The Professionals

Property is very expensive and ensuring you are getting a property that will generate a return can be a time-consuming process. Therefore, it is worth your while to consult with a property investment company to let you know what the risks are and ensure you know what returns to expect.