Investing in bricks and mortar has always been a popular method of investing money.
Property investment is about buying premises with a full, repairing, and insuring a lease which means that the property investor receives a strong yield in terms of rental income without deductions.
Often the income is less secure in residential property investment, typically not longer than 12 months, and therefore in addition to securing the income stream, a property investor buying residential property will be more concerned with the underlying asset value and capital appreciation.
Historically, residential property investment was undertaken in personal names for flexibility and because the finance costs were cheaper. Individuals would use Declarations of Trust to share the tax burden. This still takes place but Attwells’ Declarations of Trust Team are now more focused on protecting the cash contribution and equity.
Who is a property investor?
Most people who start out in property investment have a successful career doing something else and are looking to diversify or create a passive income, so they are less reliant upon their job. Many of Attwells’ property investors started out small and have gone on to become full-time property investors or have become property developers.
If you are buying property as a property investor then this is business and your approach needs to be very different from buying your dream home. You are buying to make money.
A property investor buys a property either for the purpose of renting it out and collecting an income or selling it and making a profit. These are two very different strategies.