Building a Property Portfolio - 03/02/23

Although investing may seem daunting, it can be a relatively cheap venture when compared to other alternative investments such as stocks and shares, and there are a few ways to get involved.

Investing in property is consistently advocated as a stable and well-paying venture, and with the current price increases due to demand issues, now is the time to get involved. By investing in property, you are able to reliably gain a passive income that fan fund future investment opportunities, or help you build towards a goal you may have.

Purchasing property doesn’t always have to be expensive, and you may be able to get started with as little as £5,000 depending on the development and location chosen.

Property

One option is to choose to purchase residential property through a property services company or developer, which will see you gaining the best yields in the best areas if the team you have chosen is experienced. But even if you choose this route, it is important to do your own due diligence.

Choosing property based on location is important, and working with a services company will usually allow you to use their brochures as handbooks for the local areas they have developments in. Depending on the area chosen, you may see yearly yields of up to 7%, which is a fantastic outcome when combined with the affordable nature of listed developments on these sites.

Working with a developer will be similar, however, they may offer you an off-plan discount, which means you can purchase the development for a cheaper rate before it is constructed and on market. By doing this, you will benefit from the area’s growth throughout construction, and you may have the possibility to see the value of your property skyrocket as completion finishes.

Loan Notes

Loan notes enable an investor to receive payments from a lender, with a possible interest rate attached, over a set period of time until an agreed end date, where the entire loan needs to be paid off. Loan notes are essentially an I Owe You, where the investor will gain a percentage back plus their original investment at an agreed date.

This is a great opportunity for an investor as it provides them with a low-cost entry fee to get into the property investment sector.

Ultimately, choosing to invest in property may seem overwhelming, but if you have any questions, it’s free and easy to reach out to property services and / or developers, and they would be more than happy to help you.

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