MONEY MATTERS
PROPERTY INVESTMENT
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any of the world’s wealthiest people have made their money through property investment, which doesn’t necessarily involve buying actual buildings. If you’re keen to explore this avenue, it’s important to fully research your options to maximise any potential returns and minimise any losses. Here we look at the main factors to consider. Property Investment Options There are two main ways to invest in property, either directly, buying a domestic or commercial property or indirectly, putting your money into a property investment fund. While interest rates have been low, property prices have thrived, but do be aware that property is a risky investment and as always, do not invest more than you are prepared to lose.
Investing in property may seem an intriguing prospect and reliable way to increase wealth, but it has many facets and there can be pitfalls along the way, so we’ve asked Lisa de Silva to explain the good, the bad and the ugly of property investment
DIRECT PROPERTY INVESTMENT Buy-to-let To maximise your returns on a buyto-let investment, thoroughly research both the location and the type of property you plan to buy. Talk to estate agents, study house prices and rental data and work out the yield your investment is likely to return. Do not forget that there can be many costs involved in buy-to-let investing, particularly if you outsource managing the property. It is also wise to accept that this is a long-term investment, which does not allow easy access to your money. Property development With TV shows highlighting the spectacular gains that can be made in property development, it’s easy to think this is a failsafe way to make money. May 2022 | SUSSEX LIVING 147
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