Updated: Jun 27, 2020
The definition of investing is “putting money into financial schemes, shares, property, or a commercial venture with the expectation of achieving a profit”
So, property investing is using your capital or funds to buy a property to achieve a profit.
For an investor “a person or organization that puts money into financial schemes, property, etc. with the expectation of achieving a profit” to achieve profit from a property the property will need to be rented out.
Meaning an investor will need to purchase a buy to let property, rent it out and collect an income. They will then be investing in property.
There are two options when it comes to Buy To Let investing and they are being hands-on or hands-off.
A hands-on investor or more commonly known as a landlord may want to work in property full time and give up their day job, they may enjoy learning about rental legislation, renovating properties and liaising with tenants.
A hands-off investor is looking to put their capital into a property and to receive a return without getting their hands dirty.
It`s very important to establish whether you want to be an investor or a landlord before starting out in property and it's very easy to make simple mistakes that mean you become far more hands-on than you had planned.
Buy to let is the best strategy for investors who want to be hands-off, whilst there will always be some work involved if the process is systemised and others are utilised to complete tasks and jobs (see my video on power teams as I`m sure it will help) there will be minimal time spent by the investor.
To invest in property you simply need to buy a property that is suitable for letting out (see my video on the perfect property, it will help you out), this process is the same as buying any residential property however a different mortgage product is required (see my video on mortgages). Once you have bought the property you will advertise to tenants wither yourself or by working with a letting agent and let the property.
The tenants will pay to live in the property and the rent will be passed to the investor. If the property rent covers the mortgage, expenses and tax etc then you are investing in property.
Is it as simple as it sounds, it can be if you know what you are doing?
You will need to ensure the area you are looking to invest is suitable, the property is fit for purpose, that the cost of the property vs the rent you can achieve leaves you in profit and of course that you have set yourself up for success.
Keep educating yourself,