There are a wide range of opportunities for buying investment property which should satisfy anyone looking to make an investment in property.
When buying investment property you could buy a second home or holiday cottage. This you can rent out throughout the year – albeit with some blank periods – and at the same time watch the value of the property rise over a number of years. You could also use the property yourself for a holiday when it’s not being rented out by other holidaymakers.
An increasingly popular method of buying investment property over recent years has been to invest in buy-to-let properties. These are properties in towns or cities and rented by locals who can’t afford to or don’t want to buy their own property to live in. As a buy-to-let landlord you hope to maximise your rental income by renting out the property for large chunks of time at once – a minimum of six months, and you hope for much longer. Your rental income should cover your mortgage outgoings and other expenses to bring you a net income, and, of course, the property should go up in value over a reasonable number of years.
Popularised by a number of television programmes, buying investment property that is need of renovation or redevelopment has also become a well-known way to make money in recent years. The theory here is that you buy a property in need of repair or modernisation, do it up, dress it up and sell it on for a nice profit. The dangers are that your renovation budget will be stretched so much that it will eat into your profits, and the time taken will also be “dead” time when you still have to make mortgage repayments on the property with no income from a tenant.
Another way of buying investment property is to buy off-plan.
This is where you literally buy a property from a plan, before it is finished, possibly before it’s even been started. You would look for healthy discount on the purchase price so that you can maximise your profits when you sell on. Buying investment property off-plan overseas has also become popular as the initial investment is often a lot less, though the purchase process can be more complicated.
Investing in commercial property is another way of buying investment property, where you buy a property and rent it out to local business. Such premises can include offices, shops, warehouses, factories. Commercial tenants tend to less hassle than residential tenants, and they stay longer and review rents more often.Buying investment property can also involve buying a business with the property. For example, when you buy a bed and breakfast property or even a hotel, you are buying the property and the business that goes with it. You might end up with a bigger property than in other circumstances but, of course, you will have to share it with other people.
Another way of buying investment property is to buy freeholds of large buildings divided into units. These can be cheaper than other property, but might only yield smaller ground rent from leaseholders.
When you buy at auction you are buying investment property at a cheaper price than when sold at an estate agents – or at least you hope you are. You may end up with a bargain, and the process is quicker, but the adrenalin of the auction room can tempt you to go beyond your limit. This is not for the faint of heart, and experience can teach you a lot.
Whatever way you decide to go about buying investment property, you should understand your reasons for doing it, and be clear about what you want to achieve. Indeed, with some of these options, be aware of what you’re getting into.
Related Articles
Happy Birthday Buy To let
By: Martyn Witt | 17/07/2006 | Finance
This summer marks the tenth anniversary of the buy-to-let mortgage. In July 1996 Mortgage Express (part of the Bradford & Bingley group) were the first to trial a dedicated buy-to-let mortgage product. However could the growth in this sector herald the decline of the first time buyer.
What To Look For In An Investment Property
By: Clint Maher | 19/05/2008 | Investing
If you had bought an investment property at any time over the last hundred years, you would have made a good return on your investment. Let's look at how we can ensure we get the best return possible for any future investment properties.
Three Ways To Maximise Your ROI When Purchasing Investment Property - Part 1
By: Joel Teo | 31/05/2006 | Advice
Property Investment is one of the oldest forms of wealth accumulation and should always be part of a larger portfolio of investments so as to balance out your risk.
How To Invest In Property Globally
By: Howard Farmer | 20/10/2006 | Non-Fiction
With so much advice and a wide choice in investment property, some essential advice and a review of current opportunites.
Should You "Buy And Flip" Investment Property?
By: Alex Anderson | 02/03/2007 | Real Estate
Though "flipping" real estate has become a popular practice, it is also pretty controversial. This is mainly because people have gotten into it without considering the ramifications of their actions and, consequently, engage in some very bad practices. The clumsy flipper can anger both the buyer and the seller-not to...
Bulgarian Property Off Plan
By: Karl Qualter | 28/05/2007 | Real Estate
Bulgarian property off plan has gotten the attention of many investors as it has shown to be an excellent investment. Bulgarian property off plan provides wonderful returns for many people, not only in Bulgaria but in other countries as well. The reason that a Bulgarian property off plan...
How to Select a Good Managing Agent?
By: Sean Wheller | 06/07/2007 | Real Estate
Even though all agents provide similar services, there are a few checkpoints you can use to ensure that you are engaging in a business relationship with a good and responsible agent.
This article is the second article in a two part series. In this article we will explore some checkpoints in selecting a good managing agent. Then we will summarize when it may be a good decision to hire a managing agent and when not.
Renting Property As An Investment Use These Secrets To Win The Buy-To-Let Game!
By: Surrinder Ahitan | 31/10/2007 | Investing
You have probably heard the buzz words "buy-to-let" recently.
So many people are deciding to try their hand at renting property as an investment.
The problem is that most of them don't know how to go about this the right way.
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
When paying cash on a bank property how much will ...
By: C | 20-05-2008
When paying cash on a bank property how much will the bank go down on the price?
When purchasing a bank owned investment property ...
By: C | 20-05-2008
When purchasing a bank owned investment property how much will they go down in price?
Investment property question
By: C | 12-05-2008
We are buying our first investment property and I am just worried about everything! One thing it is an old 2sty and someone had removed one of the support beams in the basement so the foundation has dropped about 3 inches we were told that we would just need to get a jack and jack it back up over several months. Is this a big deal?
Te gusta demasiado alguien, tanto que sueñas ...
By: Laura Cortes | 10-04-2008
Te gusta demasiado alguien, tanto que sueñas dándole un beso en su boca, solamente es un conocido, muy bien conocido aunque no cruzan palabras relacionadas con sus aspectos personales. Cuando estas frente a esa persona te pone los nervios de punta, se te mueve el piso. ¿Qué harías?:1. Haces hasta lo imposible por tener una cita normal (bailar, cine, teatro, tarde de café o copas . . .) con la persona en cuestion y dejas que la situación desenvolver libremente la situación para saber hasta que tipo de relacion puedes llegar.2. Aprovechas un buen momento para decirle que te gusta. se lo dices:A. por internet en vivoB. por internet por mailC. en persona (como en una cita o estar totalmente solos) D. por teléfono3. Aprovechas un buen momento para decirle que quieres darle un beso. se lo dices:A. por internet en vivoB. por internet por mailC. en persona (como en una cita o estar totalmente solos) D. por teléfono4. Buscas tu beso en un buen momentoA. se lo robasB. se lo pides5. Dejas las cosas así y te "tragas" las ganas y sentimientos y no haces nadaTu, ¿qué harías?... puedes mezclar respuestas o.. dinos una que no esté!
How do i talk dirty to my boyfriend over the phone?
By: lboddy | 21-02-2008
my boyfriend lives far away and we talk alot on the fone and computer, he recently asked me if i could talk dirty to him on the fone and i said no way as id be too embarresed and i wouldnt know wot to say. can u help me with sumthin to say lol?
Education as a financial investment
By: Aaron_f | 11-02-2008
There's a claim that higher education is the best investment today. If so, what discipline of higher education gives the best value?
Q&A Powered by:
Latest Business Articles
Undersell, Overdeliver
By: Charlie Karlheinz Lang | 08/07/2008
This article shows us how salespeople can undersell and overdeliver to get more success in sales.
Would You Like to Take the Pain Out of Giving Constructive Feedback? the Seven Steps
By: Julie Ellis | 08/07/2008
Pretty much all of us feel uncomfortable about giving feedback. If we don't know how to do it effectively, we can either avoid it or make a mess of the communication. This article gives the 7 steps in how to give constructive feedback in a way that works. It begins by asking us first to take responsibility for our own reactions so that they don't get in the way and then gives a step by step guide to achieving a positive outcome.
Are You a 'people-friendly' Manager?
By: Pat Brill | 08/07/2008
A "people friendly" environment reduces stress, decreases turnover, and supports higher levels of performance with employees. Organizations today are addressing the "people friendly" environment with additional programs that support work-life balance. And..that is great.
Locate Employment 101
By: Ed Opperman | 08/07/2008
Most people find services more convenient and easy. It takes away much of the arguments that come along with serving papers or repossessing property.
Connaught Opens Fund For Investors Tired of Products
By: Mark Smalls | 08/07/2008
Connaught Asset Management has launched a Guaranteed Low Risk Income fund, which company executives said is aimed at investors who have lost their appetite for investment products.
It promises to pay a guaranteed annual return of at least 8.15 per cent, by investing in low-risk, short-term bridging financing.
Investors who put in...
Capita Buys up Land For Future Planning
By: Nigel Walter | 08/07/2008
Funds seeking the UK sites most likely to obtain planning permission for buildings.
Capita is to launch two funds to snap up land that could be used to meet the government's target to develop 4.2m homes over the next 20 years.
Connaught Asset Management has been appointed by Capita as the specialist...
How to Expand an Office Cleaning/ Janitorial Business
By: Brent Wale | 08/07/2008
If you own and operate an office cleaning/ janitorial business, or looking to start one,Here's a way you can explode your income in your office cleaning/janitorial business without even getting any new accounts.
Feedback as a Competitive Sport
By: Jennifer Selby Long | 08/07/2008
A common roadblock to success is the use of feedback to win, to dominate the person seen as the opponent. Dealing with this can affect your happiness and your sanity. Organizations in which leaders and managers routinely share high-quality feedback are easier to scale and have fewer nagging problems and less operational drag.
More from damianqualter11
Czech Republic Investment Property
By: damianqualter11 | 29/04/2008 | Business
Since the Czech Republic joined the EU in May 2004, it has attracted more and more investment to the country. So in 2007, is the market still viable for those searching for a Czech Republic investment property?
Investment Property in Uk
By: damianqualter11 | 08/04/2008 | Business
The current state of the UK housing market makes finding investment property in the UK rather difficult as the market has taken a downward turn.
Business 
