What do I need to know about investing in property?
Investing in property can be a good way of building an extra income or as funds for a retirement plan. There are various different options available on the financial market. Here are just a few that you could consider. Always talk to a professional advisor first as an expert will be able to give you in depth knowledge on any pitfalls or gains depending on what direction you choose to take for your investment portfolio.
• Direct property investment.
This is when you buy your own property to let out, a buy to let mortgage is a good option to consider if you will not be living in the property yourself.
• Indirect property investment.
A Property Open Ended Investment Company (OEICs) and Property Unit Trusts are schemes where investment funds are pooled into one fund that invests in a property portfolio. It either invests directly and or purchases shares in companies that invest in property. These are all regulated so there are safeguards put in place that will reduce risk of financial loss.
• Collective investments.
This includes investment in other financial arenas that don’t just involve property. A trust will also look at life assurance policies, shares and government bonds and spread the risk. Again these are also regulated by the FSA (Financial service Authority)
• Getting the right advice.
Before investing in any scheme you should always get professional advice. Investment will always carry risk so discussing this beforehand will help to minimise any potential issues.