Investing in property is a traditional form of investment whereby you purchase a house or block of land and make a capital
return from the sale of the house or land in the future.
Even the house you live in can be classed an investment
property– it will increase in value, provided you look after it of course! And you can increase its value by strategic
renovations and good maintenance.
You can also buy property specifically for investment purposes. In this case,
it’s worth selecting the location well [it’s all about Location, Location and Location!] – buy the worst
house in the best street, rather than the best house in the worst street. You can then seek tenants to lease this property
to help pay off your mortgage!
Investing in properties is usually low risk, but you do need to take care with
‘boom’ and ‘bust’ markets. Properties purchased during a boom period may take some time to increase
in value if you buy at the peak of the market. But in the longer term, property markets almost always go up in value, and
astute property market investors can make a great deal of money by predicting the next ‘boom’ suburb.
Investing property is a good option if you have a low risk tolerance but a mid to long term investment horizon. You also
need to invest a significant amount initially to purchase the property, which can be a limiting factor.
lots of rules and tricks of the real estate trade to optimise your property investment – know these and make the most
of any advice you get.
Art and Antiquities
Some people enjoy investing in Art and
Antiquities, which involves purchasing a piece of Artwork or an antiquity and relying on the capital growth of the piece to
provide a return on the sale of the item. The item can also be leased to corporations (for display in board rooms and the
like) so you can make income from the item too – or you may just want to enjoy the piece yourself!
Antiquities investments are relatively low risk and low return, and are typically managed through a reputable dealer.