Home Buying Advice
Investing in Rental Property.
Investing in rental property if you don't want to take the plunge and buy your first property now, or if you can't afford it, is a new way you can invest in property without taking out a mortgage and with some of the same returns. You invest in rental property shares.
You can buy property shares in a range of professionally managed rental properties and assemble your own buy-to-let property portfolio. You don't even need to leave home to do it. Having shares in rental property - would offer similar returns to owning a rental property but without the need to raise an enromous deposit or get a mortgage. It could be a way of building a deposit to enable you to step on the first rung of the property ladder.
This way, you don't put all your money into one property, you can spread the risk by investing in a property share portfolio.
With traditional buy-to-let you have to invest a large sum of money – perhaps a much as £25,000 – into a single asset. Now you can build up your property portfolio bit by bit. In fact, with 'thepropertyinvestmentmarket' there is no minimum investment so you can get started with as little as £1.
Unlike traditional buy-to-let, you can invest a fixed monthly amount and build your property portfolio over time. This is a well known investment strategy called 'pound cost averaging' – it means that when prices are high, your fixed monthly investment buys fewer shares but when prices are low you buy more.
With this property portfolio you have the chance for your investment to earn income from property as well as to gain from capital gain in value. Maybe this could even be a way of saving for a deposit on your own first home.
Other useful Home Buying Guides:
Property for Sale Home Information Packs Finding a Property Co-Buyer Low Cost Home Ownership Repossessed Property Property Auctions Getting a Mortgage if you have Debts Inheritance Tax Planning Stamp Duty Affordable Housing Gifted Deposit