What are the best property investment strategies for making money consistently from property in any economic climate? There are many methods and ways of making money from property that people that are not involved with property investing on a regular basis have no idea about. This web page reveals seven of the most popular and explains a bit about them. You can also check out our property investing guide for more in depth information.
Buy to Let
Being a buy to let property investor is one of the most well known property investment strategies. It is the thing that most people think of when they thinking about making money from property. Being a buy to let investor basically consists of you buying property and renting/letting it out to tenants; hence, the terms “buy to let.” This is seen as a good way to make long term passive income as well as benefiting from capital appreciation. Providing you have bought the property at a good price and it is structurally sound and in good repair, if you leave the daily managing of the tenants to a good letting agent then this can be a hands off investment that provides you with a monthly income as well.
Being a property developer is the second well known way of making money from property that just about everyone on the street would know. Being a developer is not normally seen as being a way of making passive income, it consists of buying and developing property or even building properties from new.
Being a developer can be more flexible than being a buy to let investor simply because a buy to let investor is sometimes restricted in which area they can invest because in many areas the rent they receive would not cover the mortgage, hence it would not make financial sense to buy there but if you can develop property then as long as you can buy it at the right price in an area that people want to buy property then you can make a profit.
It is possible to combine the rolls of buy to let and developer by developing property and then letting it out but normally this would still probably be classed as being a buy to let investor, you would just be one that develops/renovates the property first. A developer is normally seen as someone who sells on the property.
Negative gearing occurs when you own a property but the income the property produces isn’t enough to cover the mortgage you pay on the property. This is one of those property investment strategies that is used extensively in other countries in the World and is becoming increasingly popular in the UK. Why would someone want to hold onto a property that is not making them money each month? There are a few reasons, check out our negative gearing page for some of them.
There are a few different variations and methods of doing lease options. It can consist of buying a property, then renting out to a tenant but with the tenant having the option to buy the property at some agreed stage in the future.
Buying Overseas Property
Buying overseas property is popular for a number of reasons. One of them being that if you live in a country that has weather that is not to your liking, then you may be drawn to buying in a country with weather that you prefer, hence you can have a second home there or you can use the property as an excuse to visit or you can even rent out the property but have a fixed period each year where you go and stay there.
Buying abroad is also popular because you can sometimes pick up property for cheaper or with better yields, or with better capital appreciation potential than the country you are resident in. In some situations it can also make good Tax planning sense to buy property abroad.
Property Reversions are one those property investment strategies that not many people understand. For a full explanation you should visit our property reversion page. But in brief, it consists of buying property off some – who is normally elderly – but having an agreement with them that they can live there rent free for a specified period of time – normally this would be until they die or move into a nursing home etc.
Sale and Rent Back
The sale and rent back has become one of the most popular property investment strategies in recent years. It basically is as it sounds which is you buy a property from someone and then you rent it back to them, so they become your tenants. There are many advantages and disadvantages to buying property in this way and investors need to be clear on exactly how to handle these sorts of property deals, especially since on occasion these sorts of deals get bad press, so investors that want to be good at sale and rent backs need to distinguish themselves from the crowd and make sure that they gain an excellent reputation in there chosen location.**Nothing on this website should be confused with financial or legal advice. If you need this, or any other type of advice, please seek the help of a competent professional. In addition, because real estate laws change all the time and differ from state to state, and even city to city in the same state, everything in these pages should be considered general marketing advice and ideas. Please see link to full Disclaimer at the bottom of this page.