There are loads of reasons to choose to invest in property. Property is a way to ensure you’re making a high quality, genuine investment.
If you aren’t sure about an investment in property, then have a look at today’s blog post – it offers 3 pieces of advice, helping you to choose property over a different investment strategy that may not return the same investment or be the best way to get your returns.
Firstly, Property gives you a great aspect of control. As an investment, the most control you can have is through property. This is the case, however most other forms of investment, such as
stocks or bonds do not give you the same control (think briefly about the nature of the stock market, how different companies can loose all their value and leave you with nothing). You can control all the elements of your investment, including the type of property you buy, what specific mortgage product you have, how you let the property, you can control the type of tenants you accept, you can control the rent you charge, and you can even control how much you spend on managing and maintaining the property.
Secondly, there’s a very diverse range of opportunities to make money from property. This is a key reason property is used by people as a wealth creation tool. Whether you want on-going income, short/medium-term gain, a pension plan, a home for your children in years to come, or a lump sum return in the future, property can work for you (all these reasons for wanting to make money relate to the aspects of property renovation and management). When it comes to variety, you can buy to let single or multiple occupancy units; you can renovate a property and then sell or remortgage; you can self build property or develop yourself; strike a deal to sell property (or land to build on) to a developer; you can get paid for sourcing property; do everything yourself and make it property into a full blown career, or you can work with other people to make it a much more passive investment. Property offers a huge variety when it comes to your options, and you only need one investment in a property to get started.
Thirdly: property can help you leverage. No other asset class offers the opportunity to leverage in the way that property does. Banks and building societies lend against property at the level they do because property is seen as having a fundamental ‘bricks & mortar’ value – as stated previously, it’s a physical asset that’s going to hold it’s worth. However, when investing in markets, this isn’t the case. Markets peak and trough – a property will almost always hold a certain level of value. So, while maximum Loan to Value rates may fluctuate, you can still leverage other people’s money to make a better return on capital than you might otherwise – i.e. you can make your money go further.
Nick Fox started his property investment career 10 years ago and his portfolio has grown to one of the largest in the UK. Nick now mainly focuses on HMOs (houses in multiple occupation) and works to help others achieve property success too. Visit here to find out how he can help you.
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