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What is Property Investment?

Investment BannerInvesting in property isn’t always just buying a property and renting it out. However, it can be as simple as that, if you know exactly what you’re doing and what you want from your investment.

So what exactly is property investment?

Investment property in the most common definition is property (be it land, a building or part of a building) held by either the owner or lessee under a financial lease to earn rentals or for capital appreciation – or even for both.

Now, anyone interested in property investment needs to be aware there are two distinct types of investments – direct and indirect.

Direct Investments

These are the more typical and commonly known investments. Direct investments include buy to let which will be bringing in a rental income and capital growth from the house price increases.

It also includes property developments – buying a property, renovating it and then selling it on for a profit.

Indirect Investments

Indirect property investments are not as commonly advertised as direct investments. This is when an investor decids to use a property fund where experts from different developments and property investment schemes invest to deliver dividends and incomes, but this is dependent on the type of fund. The benefits? No work will be required by the investor as everything is done by the fund manager.

 Invest in a Buy To Let Property 

Lets start with direct investments, as that is what most investors are looking for. Its important to note direct investments require a lot of commitment. Investors will need to deal with letting agents, if they don’t wish to handle the day to day running of their rental property themselves. Silks can provide you with a full management service so you don’t have to worry about anything. Give us a call on 01924 477999 for further details.

Property developments offers huge returns for investors but may require more time to project manage the renovations. For further advice on this feel free to drop an email to invest@silksestates.co.uk

Clearly direct investments are more hands-on and involves active participation to generate the required returns. The benefit of direct investments? The investor doesn’t need to cover the full value of the property themselves.

Part Funded Direct Property Investments

With direct investments, an investor could part fund the property with a mortgage to make it easier. Check with your mortgage lender/advisor for buy to let mortgages to see what you can be offered.

Property investment should be viewing as a long term investment. After all, with an ageing and growing population, someone or another is always going to be looking for a home.

As your personal sourcing and managing agent, when it comes to direct investments we can offer our services and expertise at a free consultation. Book yours now by dropping us an email at invest@silksestates.co.uk