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Investing in Rental Property.


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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    


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There's alot going on! What do you think?

Interest rates are low but could rise? Is this a good time to buy?

Yes
No

Varialbe rate mortgages go up if bank interest rates do. Which is your preference?

Fixed Rate
Variable rate

Interest only mortgages are cheaper but in the end you don't end up owning the property. Which is better?

Interest Only
Repayment

House prices are waivering. Do you think this is a good time to buy?

Yes
No

Shared equity mortgages allow you to buy a new home with 5% deposit and an equity loan through FirstBuy. What do you think?

Too complicated
Too expensive
Too risky

Rent to buy allows you to peg a property price, save towards a deposit and pay reduced rent. What do you think?

Works best in a rising market
Too complicated
Good option