If you are looking to make money then I’m sure at some stage you have thought about investment property. Buying property is often seen as a safe investment. ‘Safe as houses,’ they say. If you are approaching fifty, then I’m sure you will have thought about your retirement. A pension is one thing. But you may want other assets too. This is where investment property comes in. But there are a few things you need to know.
Time Is Limited
One of the watchwords with investment is to buy and leave for the long term. Whether you ae buying stocks and shares or investment property, the long run is your friend. It irons out all the peaks and troughs in cycles. We have al seen property booms and busts in our time, most recently in the United Kingdom was the Credit Crunch crash of 2008.
If you leave your money in for a longer period of time, you can see a steady gain. This contains all of these peaks and troughs but the overall trend is usually growth. If you are a man approaching 50, then you might want to access your cash again in the next ten to twenty years. You don’t have the same long term as someone maybe in their 20’s doing the same thing. Think about the investment term and when you want the money out.
The Cash Is Tied Up
Once you’ve put money into a property it pretty much stays there. A big increase in value and rental return might allow you the chance to remortgage and release some equity, but don’t count on it The same as above, the money should be there for the long run. The costs at the start make it prohibitive to buy and sell regularly. These costs include –
- Solicitors costs including searches, etc
- Mortgage costs
- Any renovation costs
- Registration as a landlord with the local council
Think about all of these as you venture into investment property. Being prepared is half the battle.
Investment Property And You
There are many ways of making money and finding that work life balance we all desire. Buy Home Sell Home is a great site that will help you understand all you need related to buying and selling property. There is also a handy section on buying property at auction. This can be a way to grab a bargain.
Look at the market and do your research before you stride into this arena. Getting it wrong can cost a lot of money. But getting it right can be a really rewarding thing, both financially and personally.