If stocks and shares have been too much of a roller coaster ride over recent years or you are simply looking to diversify your investment capital, you may want to consider the following property investment strategies.
Buy-to-let
The term 'buy-to-let' first came about during the mid-1990s and describes the practice of purchasing property to rent out to tenants.
Over recent years, buy-to-let has become very popular and with many people priced out of the housing market, there seems to be plenty of demand for rented accommodation.
When buying-to-let, ensure that you pick properties with rental appeal and that the rent you charge each month will cover the costs of the mortgage and management fees.
Property development
This strategy ranges from renovating run-down homes to purchasing land and building completely new houses.
Usually the developer will be able to spot some unrealised potential in the property and immediately after purchase begin making the changes to release that potential and increase the value.
Speculating
Put simply the speculator will buy the property cheap and go on to sell it at a higher price to produce a profit.
There are many ways for this to be done, including buying off-plan at discounted prices or predicting where the next property hotspot is going to be.
Speculators can also increase the value of their property by obtaining planning permission to build on the land, before selling it to developers.
Property speculation is often a medium to long-term activity, but a short-term version, often known as 'flipping' exists, where the property is immediately sold again shortly before or after purchase.
An example of flipping would be a property investor purchasing a house at auction and then putting it straight back on the auction the following week with the intention of selling at a higher price.
Degrees of risk
All of these strategies carry varying degrees of risk, but can also provide a good return on investment if properly managed. As always, investors are advised to seek professional advice before entering into any transaction.
Don Suter is Managing Editor of the UK Property Portal (http://www.ukpropertyportal.co.uk), an online directory for UK property sales, rental, surveyors, mortgages, conveyancing, property insurance, removals, news, investment and development.
Beyond the River: Kabbalahs Guidance for Our Times Humanity is in a vigorous phase of global challenge. The acceleration of time and the increased energy frequency on the planet are creating volatile change and...
Exercise Program Article discussing an exercise program and variations of workouts depending on your fitness goals and objectives from bodybuilding to toning, staying healthy an...
Increase Business By Being Nice I have been reading articles on increasing sales using search engine optimisation as well as writing them for a very long time and I have not seen many which po...
Success Through Short Memory A weak or short memory can be a huge advantage if it helps you forget past failures. Abraham Lincoln must have had a short memory for his past failures. So have...
As a Realtor, How Do I Attract Listings? Have you ever noticed that despite the massive number of Realtors in your area, only a hand full are making a fortune selling real estate? Regardless of who th...
Time Management -- Urgent vs. Important Life can be such a juggling act. Like professional jugglers, we try to keep 5 or 6 balls moving through the air at the same time. But unlike professional jugg...
How To Build a Profitable Business It's never too soon to start saying thanks to your clients, vendors and referral sources for what they contribute to your business. Everyone loves to be appreci...
Is Bankruptcy the Right Option for You? If you are considering bankruptcy, it is important to understand the differences in these types of bankruptcy and to choose the one that best fits your needs an...
How To Break Into Print Publishing The most important part of getting your error-free manuscript
published is choosing the right market. The best way to do this
is to read books that are aimed at...
A Word About Sexy Costumes One of the great things about Halloween is that I can still revert to a boyish behavior and have fun, no matter how old I get.
Use Up Those Leftovers! Managing leftovers is a challenge we all face! Throwing food away is just like throwing money away. With a little time, organization and using a little ingenuit...
Ancient Olympians Followed Atkins Diet Atkins diet was unknown 35 years ago. Though it seems that ancient people - athletes particularly - followed a strict diet which is likewise Atkins basic. Stric...
Two Steps to Improving Your Marketing Success Since the human brain seems to be able to focus on only one thought at a time, it's difficult to evaluate an advertising idea from the perspective of both a mar...
Dont Forget About Your Old Ezine Articles Forgfetting about old ezine articles you're written in the past may be one of the biggest mistakes you can make as a writer. Find out how to get the most out of...
Love is Not the End but Beginning Scott had to turn his head away while the needle penetrated; with a sobering voice, he kept saying, "I am sorry; I am so sorry." As soon as he returned home fro...
Religion or Spirituality There is a natural tendency to associate spirituality with religion, but they are very different. Religion is an organized system of beliefs and spirituality i...
Tips on Using Tanning Beds When using a tanning bed, you want to achieve the maximum tan for the minimum exposure to the UV rays. By following these tips, you can spend less time tanning...
Print this page