Guide to Property Investment
It is not just about buy to let. You can invest in property in a number of different ways.
The simplest way to invest in property is to buy your home and then sell it at in the future, hopefully for a higher price.
However you can also invest in commercial property or buy-to-let where you purchase a property to rent it out.
By renting out a property you could receive a regular rental income. You may also profit if the value of the property increases.
The rental income you receive could be more than the interest you could earn if the same money were in a savings account, however there are risks as well.
One of the risks of investing in property is not being able to make your mortgage payments and if the interest rates rise you may owe more each month than you anticipated.
Other things to consider are the cost of maintaining the property, the risk that there may not always be a paying tenant also there is the chance that the value of the property goes down instead of up.
You can also invest in property indirectly through a property fund like a property unit trust or investment trust. This way you can get exposure to commercial property investment without necessarily investing large amounts of money.