Thinking about investing in property?

 

 

Whether you’re just dipping your toe in the housing market or you’ve already started to build up your own portfolio, investing in property is still one of the smartest ways to make your money work hard for you.  Belgravia estate agent, Best Gapp says, “Even in today’s uncertain economic times it’s still one of the safest- and most lucrative-ways to look after your hard earned cash.”

There are plenty of resources available online and is possible to go it alone, but lots of people still find that the safest way to invest in property is to work with an experienced investment company. The benefits of working with seasoned property investors is that they’ve got the experience to spot a good deal and generally know which ones look too good to be true. They’ll also do a lot of the leg work for you, meaning you can sit back and relax knowing that there’s an expert taking care of everything on your behalf. Williams Lynch says this approach is the perfect armchair investment opportunity-, “Many also go as far as to handle tenancies and selling once all the refurbishments and developmental work has been finished, managing every stage of the process while your money grows.”

How it works

Most property investment companies make their money by sourcing properties at below market value and then doing renovations and refurbs to make them attractive to new buyers or the rental market. They seek out investors who are looking for reliable, high yield opportunities and put their money into properties that will deliver a strong ROI.

Strategies

There are several ways property investors put their money to work:

A fast track option is popular with people who want to make a quick return on their investment, which they can usually expect to see within twelve months. With average returns of between 8% and 10% it’s fast, effective money spinner which is more effective than an ISA. This is great for people who don’t have much experience or interest in property and are happy to leave all the negotiating and refurb work to the investment company.

Those who are keen to get more involved with the property investment process are often attracted to portfolio building services. This is where the investment company builds more of a long term relationship with the investor, asking questions about their long term financial goals and the types of properties that interest them. It’s great if you want to take a more hands on approach with the projects, and there are usually opportunities to attend building sites and watch your investment take shape in real time. This option naturally takes longer than fast track opportunities, and you can expect your money to be tied up for anything between three and seven years.

HMOs. Homes of multiple occupancy are big business- our population is at higher levels than ever, and that’s not likely to change any time soon. People will always need houses, and those with several people sharing are always going to be more lucrative than a one bed flat (unless it’s a penthouse in a highly sought after area).  Commercial properties are often bought at low prices and then reinvented as HMOs, and properties in university towns are a particularly good move.

If you’re still not sure. It’s reassuring to know that even despite Brexit and the new president, the housing market is still relatively buoyant. Denhan Guaranteed Rent summarises, “The UK is now the most overcrowded part of Europe and with figures expected to top the 70 million mark over the next 20 years it’s easy to see why so many people are still investing in property.”

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