Property is one of the four most common types of investments, along with shares, cash and bonds. These are known as the ‘asset classes’.
With various forms of ownership and development opportunities, property is an exciting and rewarding avenue to explore.
From landowners who are interested in maximising the assets they already hold – by developing lucrative and much needed properties – to those who are curious about buying-to-let, there is almost certainly an option that can suit your lifestyle and ambitions.
If you are considering developing a brownfield or greenfield site, there is a whole range of tasks to complete to get the project off the ground.
In the early days, there are site surveys to complete so you can see what might be possible on your land, the engagement of an architect to design the development, meetings with the planning office for planning permission… all before you even get around to breaking ground and laying foundations.
Some landowners opt to work with a development company, who will have all the expertise and professional network behind them to make the project planning and management run smoothly. That way you only need to consult on the important matters and don’t have to have your life completely engulfed by the exciting, but often consuming, journey of managing a building development.
Of course, many landowners decide that the experience of property development and ownership is not suited to their lifestyle and choose to sell their land outright to a construction company. It may be important to you to research which companies have the same vision for your land and local community as you do.
There are also indirect property investment funds and trusts, which pool money from many investors to invest in shares or property. The pros of this are that the initial commitment is lower than investing as an individual, but you will have less control over where your money is going. It is just as important for this type of investment as any other that you understand the terms of your contract fully before making a decision.
Buy-to-let is another exciting form of property investment. With a range of buy-to-let mortgages available these days, it is a good idea to consult a mortgage advisor to discover the best option for you.
Once you have received advice (from different sources) regarding your mortgage options, you will also need to think about how much management you would like to do. Many buy-to-let landlords choose to have their property managed for them by an agent. This takes away all the worry about statutory duties and paperwork, and means that there is always someone on hand to offer experienced advice.
Long term plans
A lot of investors choose to purchase their properties as a buy-to-let, and then in time take the decision to sell for a profit. This is seen by some as a ‘nest egg’ or inheritance plan. It’s true that the housing market can fluctuate short term, and so it is always important to talk to people who understand the field of property development and investment.
As a long term plan, it is reliably the case that many people have found security in drawing a monthly income from a property whilst having all the ownership rights to make a lump sum when their venture comes to an end.
At Gould Homes we are always keen to hear from potential investors and are more than happy to talk through the different ways in which we might help you build your investment or begin your property portfolio.
To see some of our areas of expertise or for more information on investing in property, feel free to look through our website or contact us.