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Investing in PropertyInvesting in property is one past time that has seen the average UK resident make money at least by buying their own home! 'It's as safe as houses' as the expression goes. If you buy more than one, and you manage to make the mortgage payments consistently, then with the effects of inflation and demand for property, then you will make money.
Property investing has become a past time for the UK. Many people have bought more than one property or have inherited and see owning property as a way of providing for their pension, with their mortgage paid off and other property providing an income - it's a more certain way of providing for one's old age. The benefits are that you can actually see and touch it, it's a 'live' asset (in other words it's real and it keeps pace with inflation and over time appreciates in value) and so long as you can service the mortgage, it'll always be there.
If you look at the Halifax website which goes back to 1963 at http://www.hbosplc.com/economy/indexmethodology.asp , you'll notice that property has doubled every 7 years, which if you work it out means that property appreciates at 8% per annum - which includes inflation. The real returns if you strip out inflation are obviously less. But the point about investing in assets is that because you don't use that much of your own money - most of it is lent by the mortgage company - that your leveraged asset is the surest hedge against the future! If you want any validation that property investment can make you The best way is to ask a lot of questions of every person, it's ok to say you're new to investing in
property. There are companies that offer free advice and this advice will generally be in the cost of their services when you buy. Use these companies to find out what you need to know.
Ajay Ahuja is a guy who has written 10 books on property investment and started with only £500 but is now worth £10m. He gives a load of free information, tips, books and even a tenancy agreement. There’s tons of information there so I’m sure you’ll find something that will help you. Buy any property for as cheaply as possible, with as little of your own money as possible and with the maximum loan to value mortgage but with the provisio of getting the rent to cover as much of the mortgage as possible. Consider companies that invest in off plan properties. Don't be put off having to fund your investment out of your own pocket by perhaps £100 per month to begin with. As time goes by you'll eventually be making more on the capital gain than the rent.
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