Property has been long seen by investors all over the world as a pretty safe bet. Everyone needs somewhere to work out of or somewhere to live, right? But is buy to let going to be the best option for putting your money into property anymore? Different changes around tax relief and other punitive changes seems to have stopped the interest in a few potential landlords. Is this the end of an era?
At the start of this year alone, buy-to-let mortgages were down by around five percent on the previous year. So while that isn’t a massive decline, it could be a sign of things to come. With that in mind then, what other ways are there to invest your money in property? Here are a few things that you could be thinking about.
Buying home to then rent out does seem to be a little less popular at the moment (only just, though). But what about buying a home, redoing it, and selling it on for profit? This is still a good way to invest your money, as long as you have the skills, money, and patience to do so. It could be worth looking at homes that are for sale by auction or that need a quick sale in order to get the best deal. But there should be a few additional costs that you should be thinking about. The cost of an unattended death cleanup, maintenance, repairs, new windows, doors, and things like stamp duty should be considered too. The only way to do well in this industry is to have your calculations on point.
Residential Property as Pension
Another way to invest in property, without going down the rental property market, is to look to invest with a property company that will allow you to invest in a SIPP (self-invested personal pension). You could even put the money in an ISA, as either way they do have tax advantages. The reason why these are doing so well is that people do still see property as a good way to invest, especially when looking towards the future and planning for a pension. The thing with this kind of investment is that you need a buyer for your shares if you are looking to sell them, so you may need to take a hit, unless you’re certain on a specific price.
Funds To Property Companies
There are many investment companies that will have residential and even commercial property on their radars. And one way to get a return on your money, could be to invest in the company themselves, after your own due diligence, of course. There are even options for things like funds for homebuilders. So you invest a certain amount towards these homes, and then you get a percentage back on their sale. If you do your calculations right, it could be a good option for you.
Have you thought about investing in property before? Do you still think you’d go down the rental route?