The idea that property investment is an activity solely for the wealthy is actually something of a myth. Sure, it helps if you have a lot of money behind you, but the simple fact is that the market is open to anyone. And make no mistake about it, investing in property is still a viable way to earn money, look after your future, and strengthen any investment portfolio. Here are a few reasons why property investment can be for anyone – regardless of their background.
All homeowners are property investors
The vast majority of people plan to buy a house at some point in their lives. And that makes them a property investor, plain and simple. Whether you live in that house or not is actually irrelevant, because you are, in fact, doing what every investor does: banking on the prospect of your home rising in value over the years. There are no guarantees this will happen, of course, but the property market is one of the safest places to put your money.
Once you have a mortgage, you can have another
Your home is capital. That means that you have wealth behind you, even if you still have 20+ years of mortgage payments in front of you. And the simple fact is that as soon as you have capital, the banks see you as a very different prospect. You will find you can access cheaper loans, better financial products, and – if you can come up with a good buy-to-let business plan – excellent deals on further mortgages.
You aren’t alone
Of course, you will still need to be able to raise cash for a deposit when getting a buy-to-let property, as well as getting to know the market and finding out how everything works. But you don’t need to go it alone. You can either team up with friends and family, or find a property investment company to help you with the basics and learn the ropes. Some companies might even offer you the opportunity to invest your money into larger developments, which might give you a quick return.
It’s a viable income opportunity
Once you are on the property ladder, it’s a lot easier to turn investing in homes, apartments, or business premises into an actual business. The more properties you have in your portfolio, the more cash you have coming in each month, and the larger your investment business can grow. In fact, you should always treat any property investment as a business if you want to make the most out of your purchase, even if you are only buying a home. You make your investment, improve the ‘business,’ and sell for a nice profit.
It’s a forgiving investment
Investing in products like stocks and FOREX can give you high returns over a short space of time. But the reality is they can be incredibly unforgiving if your particular market tanks. Property is much more forgiving than other investment sectors as that as long as you can keep paying your mortgage, you can hold until any market fluctuations blow over.
As you can see, property investment is not just for the wealthy – so could you make a go of it?