When it comes to property investing, there are various approaches available. The key is knowing how to source the right opportunity and turn this into a profitable investment. In this blog, we will talk you through why you should consider investing in property.

KEY BENEFITS OF PROPERTY INVESTING

There are several reasons why property investing can prove lucrative when you have the right opportunity. As well as offering some tax benefits, it can provide investors with a passive form of income, especially when partnering with property development experts.

If you already have various investments, investing in property can help to diversify your existing portfolio. Property investing is more resilient than stocks and shares investing, which is impacted by market changes. Many property investments also offer high returns and access to cash through refinancing. Over time, and with the right opportunity, you could grow the amount you have invested through increases in equity or rental income.

For landlords, generating extra income through rental properties can help to create a stable form of cash flow. If you are a landlord who is looking to sell, we can buy your property, helping you repay a mortgage and see a profit.

HOW DOES PROPERTY INVESTING WORK?

First of all, you need to be clear on your goals. When we work with investors, we will tailor development opportunities to suit their specific goals. You might have some spare capital, for example, that you wish to invest to build a savings pot.

One standard approach is to invest into the purchase of a below market property, which is then developed to increase the value. As certain improvements make refinancing simpler, this releases the equity and results in a profit margin.

Many property investors then go on to build a portfolio of investment properties, using the Buy, Refurb, Rent, Refinance, Repeat (BRRRR) Method. This approach involves buying a distressed property, carrying out refurbishments, renting it out, and refinancing to repeat the process. BRRRR requires a team of people with mixed skills to carry out any works needed.

One challenge is the ability to find the right type of deal in the right location. The purchase price is important because you need to get the margins right from the start. You also need to factor in the true cost of renovations. For many investors, it is easier to partner with a property development company that has proven experience in finding lucrative opportunities.

To conclude, a successful property development venture is often down to the experience and ability of those involved in the purchase to make the necessary improvements. When individuals attempt to buy a property without the right knowledge or skills, the resulting costs can go over budget. If you get the numbers wrong then you won’t be able to make a profit.

Interested in property investing opportunities? Please download our Investor Pack.

If you have any questions about this article or you would like a chat about property investing, please get in touch.

Thank you for reading our latest blog, Why You Should Consider Investing in Property.

RJJ Development