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Investing in Property

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.

There are 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!

Art and Antiquities investments are relatively low risk and low return, and are typically managed through a reputable dealer.

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We are not certified financial planners or advisors. The information in this website is general information only. Always consult a licensed financial planner before making any finance or investment decision.

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