Different methods of investing in property

Bricks and mortar has always been looked at as a solid investment that won’t disappear on you like stock prices, but there are lots of different methods of investing in property, we are going to take a look at a few of the best strategies for investing in property.

Why would I invest in property when I can just get shares?
Buying property and holding it for capital growth is a sluggish but steady way to make you money. However, the greatest benefit to investing in property, beyond the possibility of capital growth, is buying power.
Property gives you the power to do other things like buy shares using the equity you have built up, but you can’t do the reverse as shares don’t generate equity.

Buy and hold
when deciding that you want to purchase a property and hold onto it until it sees capital growth, aim for capital growth of 8% or more.
For Positively geared houses (i.e. the rental income your receiving for that particular house exceeds the mortgage repayments), you should be looking for around 5% capital growth each year.

Buy and renovate
Cosmetic renovations (painting and new carpet etc.) can produce a good profit in a reasonably short timeframe.
Structural renovations (adding an extra room or knocking down a wall etc.) can produce much larger profit but take a lot longer and generally require contractors who cost an arm and a leg.

Risks involved with property investments
People that don’t buy within their affordability will find it a huge challenge to hold on to their property when times get tough, always expect rises and falls in the property market and in mortgage rates.

Benefits involved with property investments
The ability to use the equity in your investment to purchase things like stocks or even using the equity in one investment property as a deposit on another one, as long as you can afford it then you could start your property empire tomorrow.