You Want To Make Money Investing? Read Why Property Is Still King

A dream home or a dream investment?

The Advantages of Buying Property

There are some huge advantages to buying real estate as an investment that makes it an idea well worth considering.

In fact, the initial thought that many new investors have is that this is something that constantly increases in value over time. Isn’t owning a house almost like a license to print money?

The truth isn’t quite as simple as that, of course. House prices can fall as well as rise. Indeed, there are occasionally periods in which prices can drop dramatically or can carry on falling for a relatively long period of time.

Yet, the concept of buying real estate is one of the few types of investment that typically sees values rise consistently over the mid to long-term in a fairly stable way. Provided that you go about the process with due diligence you should be looking to see your money grow consistently over many years.

There is no guarantee of success but it would certainly be something of a surprise if your investment lost value over a reasonably long period such as, say, 10 years.

Another advantage to take into account is that this is the kind of investment that you don’t need a huge initial outlay to make a profit from. If you are going to be taking out a mortgage to pay for it then the upfront costs could be very reasonable considering the returns you can make.

Get someone else to pay the mortgage for you

You will, of course, need to pay the mortgage each month to stay on track. But in an ideal world, you will have a tenant who pays rent that covers your mortgage for you, so that the amount you owe decreases while the value is increasing at the same time. And very little, if anything at all, is coming out of your own pocket.

Don’t forget that the amount you owe on a mortgage will go down more rapidly in the last few years if you choose a capital & interest – also known a repayment mortgage – type of loan. This means that the decrease in the amount you owe accelerates over time. And at the same time as your loan is decreasing, the value of the property will keep on increasing.

Remember, all of this profit comes from a modest deposit with, hopefully, limited on-going costs. If you’re able to rent the property then you won’t be ploughing a lot of your own money into the deal and you hopefully won’t be paying too many additional costs apart from occasional repairs and bills.

Anyone can buy and sell. So why not you too?

This is why it can turn out to be a very profitable business if you go about it in the right way.

It’s is an investment approach that anyone can try. You will need to be well-informed about the property market and other related financial factors, but you don’t need years of experience to do it either.

Because of this, a huge variety of people around the nation have invested in property, while many others are thinking of doing so right now. Not everyone who does this is successful, but if you carry out plenty of research first, then there is no reason why you can’t make a lot of money. And who knows, maybe you can even turn it into your full-time job.


Personal finance blogger who's fanatical about financial freedom, investing and making money in the UK

What do you think? Leave a reply here

This site uses Akismet to reduce spam. Learn how your comment data is processed.