Getting into property:Made (Somewhat) Affordable
Good Morning,
Today I will be sharing some slightly more affordable steps you can take to get into property investment. There are possibilities to invest in property with as low as £1 upfront payments - upfront costs being the number one reason for people becoming hesitant with property investment. I hope this article will aid at least one of you with getting on the property ladder.
Develop The Right Mindset
Before investing any money, it is important that you know what you are doing. Be prepared to study the housing market and do extensive research - the knowledge you gain in the process will be the key to success in your property investment journey.
2. Invest in REITs
A REIT (Real Estate Investment Trust) is a collection of shares in commercial and residential properties gathered into a portfolio. REITs pay dividends consisting of rental income and capital gains. This is a great way of investing in property without the responsibility and costs of ownership.
3. Property Lease Options
Property lease options essentially allow you to rent a property out without buying it. Requirements to make this work are; an agreed monthly payment to the owner, length of the agreement and a purchase price for you to buy outright further down the line. In the meantime, you enjoy the benefits of steady rental income, which I would recommend saving up to buy the property outright.
4. Property Crowdfunding
This is when a group of investors pool their money, giving each person ownership of a small share of the property. Using property crowdfunding, you may invest in property developments - where each investor will receive a share of the gains from the sale of the property. Alternatively, a buy-to-let strategy may be utilised for shared rental income amongst investors.
"The only bad time to buy property is later" ~ Steve Bolton.
I cannot stress enough the importance of doing your own research before committing to any of the mentioned investment opportunities. I am not a financial advisor and this is not financial advice. Thank you for reading, don't forget to like and share!
Written by @getitdone43