The Newbie’s Introduction To Property Investing
Property investment in the UK can be a surprisingly complex and rewarding experience. There are a number of ways that a newbie might get involved with property investment. They can be separated into two primary categories. The first is residential property investment and the second is commercial property investment. Both of them have their strengths and weaknesses. A potential third option is to invest in stocks and funds, such as Real Estate Investment Trusts.
Residential Property Investment
The most common form of residential property investment is known as buy-to-let. This is where you purchase a residential property and then rent that property to tenants. Buy-to-let investing is generally considered a safe investment. Property values will undoubtedly fluctuate over the years, but property as a whole is still a smart investment in the long term. And make no mistake about it, buy-to-let is an investment opportunity with long-term rewards.
A successful buy-to-let investment requires renting out a property for the perfect amount. The income needs to be enough to cover the mortgage and fees associated with the property as well as provide some profit. Most properties will reach this point in time, but your goal should be to achieve this milestone as soon as possible. That requires finding the best possible homes for the best possible deals. No easy task.
Commercial Property Investment
Commercial investing essentially takes the game to the next level. The capital required is larger, the risk is larger, and the rewards are larger. The good news is that any property can be considered a good investment after enough time has passed. That applies to residential as well as commercial property. Of course, that doesn’t mean you should throw your money at the first opportunity that comes your way.
Successful property investment, especially when it involves expensive commercial properties, is best done with the advice of a professional. Working with accountants, real estate agents, and investors who have experience in the market can make all of the difference. That’s what will take you from newbie-status to successful investor.