Property investment refers to the buying, possessing and improving of property for the purpose of reselling or rental of the property. Real estate investment also involves the buy, holding, possession, management, rental and / or sale of property for personal gain. Property investment generally refers to a specialized field of property dealing, which is characterised by the buying and selling of different types of properties. As part of an overall real estate investment plan, development of the property as a whole is also considered a sub- specialization of property investing known as real estate development.
In the past, the only way to invest in property was through the use of bank loans which were quite difficult to qualify for, especially for those who did not have good credit ratings. This issue has been addressed by the present government’s Financial Services Authority (FSA) who introduced an Act in 2005 that allows all UK residents to invest in property through approved mutual funds. The main idea behind this Act is to provide an easier gateway for foreign investors to invest in UK properties. These funds are managed by professional asset management companies who ensure that they invest in properties that are suited to their needs and are growing at a steady rate. Besides, these funds are not subjected to any capital gains tax.
Mutual funds can invest in property both for commercial and residential purposes. Funds can be pooled together to invest in property according to their own discretion. These funds are usually invested in real estate properties which need some work like repair and renovation. There are certain factors to consider before choosing mutual funds as an investment option. While it is easy to invest in property with funds, it is imperative that investors invest in properties through approved investment schemes under the UK tax laws.
An important consideration while investing in properties is the need for quick profits. Even if it is a slow market, there are many people who want to invest in property. It is therefore important to choose those investment options that offer long term benefits. Properties that have some additional potential can be bought at a low price and later sold at a high price. Therefore it is very essential to do adequate research on the current property trends and the rates offered by the different real investing companies.
A major advantage of investing in real-estate investment through it is that the investors do not have to bear all the cost of repair and maintenance of the property. This is very beneficial to the investors. They can save money on paying professional contractors. This is because they pay a flat fee for letting the property for rent rather than paying monthly rentals. Other ways of investing in property include purchasing plots of land that one requires for cultivation.
To get started in this venture, it is important to study all the options available to you. You can go for rental or buy to let property. The 8 ways to invest in property show that you can select the ideal way depending upon the type of property you wish to invest in and the rate at which it is going.
Some of the ways to invest in property include the buy to let investment, the lease option investment, the limited partnership, lease option investments and the property ladder. Some of these investments involve the use of loans, while some of them do not require any loans. Most investors who do not want to bear the cost of maintenance go for the buy to let investment.
Lease Option deals with short term rental agreement. In this method investors can increase the rent amount offered. Limited partnership deals with different properties and also allows investors to get involved in different properties. Other investors opt for the property ladder as it allows them to easily invest in different properties.