What is a Buy to Let Investment?
Property investing is a process in which it involves the purchase, ownership, management, and/or rental of tangible properties to earn a profit. This is a risky investment because it involves a lot of factors such as the fact that it is an asset form with limited liquidity relative to other investments, and it is capital intensive and cash flow dependent. These factors should be kept in mind and should be well understood by the investor, if not, then surely it will cause a headache.
How to make money in Buy to Let Investments?
The following are the basic ways on how to earn money through property investments:
1. Property Appreciation
This is when the value of the property increases because there is a change in the housing market. It might be because a school or a factory is going to be built near your area. Thus, increasing the demand for lands, apartments or homes.
2. Basic Rental Properties
This is an investment which focuses on buying a property and renting it out to a tenant. Usually, the owner is called the landlord and is responsible for paying the taxes and the costs for maintenance. The rent of the property should be enough to cover these expenses.
3. Property Investment Groups
This is an investment which is nearly the same with basic rental properties but if you don’t want to be the landlord, then, this kind of investment is right for you. A certain company will buy the property and they let investors buy the property through the company, thus joining the property investment group. The company will shoulder the maintenance, mortgage (if there’s any), and taxes. In exchange, the company will have a percentage in the monthly rent.
4. Property Trading
This is an investment in which investors hold the property they bought for a short period of time in hopes to sell the properties and earn a profit.