Using property as an investment is a wise choice while interest rates remain at a record low. More and more of us are seeing the potential to earn some return on our capital on property investment opportunities, but deciding whether to buy to sell or buy to let can be a tough choice.
It is worth considering that people are currently finding great difficulties in obtaining mortgages, this is creating a particularly strong rental market. A good quality buy-to-let property can earn much higher yields and will be in great demand.
When managed correctly buy to let properties are a very safe and steady investment. If you are holding them for a long time you are able to ride the volatile wave of house prices.
The buy to sell strategy is a much more short term approach to increasing your capital. Purchase, renovation & resale. This requires a great deal of knowledge in the local market and ensuring you purchase the property at the right price. Selling a property is always an unknown as factors in the property market can change overnight reducing or increasing peoples ability to purchase a property.
The specification of the refurbishment should almost always be greater than a buy to let property and presentation is key in order to sell the property quickly.
Right now the tradition of renovating houses to sell them on at a profit is not proving as popular while the property market remains so flat there are still those with a keen eye for a bargain which they hope will earn them a profit. It can be a much riskier approach than buy to let but it also produces instant results. Either way property investment opportunities can be a wise move.
