Property Investment
This article will answer some of the questions that often appear in our mind when it comes to property investment. What is the different between property investment and stocks or shares? The answer will be property investment will never reach zero values. Although stock and shares can help us to get high annual returns up to almost 20%, but the fact is it might also prone to dipping us down to -8% and having us suffer from loss.
Talking about property, it shows a different story. Although in recession, it still can produce us with annual returns up to 20%. Furthermore, if we invest correctly, we will have a more stable route.One of the questions that often appear in our mind will be whether we need a capital to invest? The answer is no, all we need is just the right strategy and invest in property using little of our money and purchase property without putting us at risk. Strategies such as No Money Down are specifically design to help or use to help us reducing cost involved. So that only legal fees and stamp duties will be our problem to worry about.
Experience is not crucial things to have in property investment. Without great experience, we can make great profit in this field too. The only skill to have in property investment is that we need to invest in good property and have good investment strategies. Having to negotiate the right property price discount, but more importantly is to ensure that we only invest in property that can generate positive cash flow.
How do we develop good strategies? All we need to do is just to attend a good property development course because we might earn years of experience from people that success in this field. We might do research online to gain knowledge on property strategies too. But remember that not all strategies will work in financial climates.
When we talk about bank loans, it will be different from applying for a mortgage where our lending amount is based on how much we earns, buy to let investment is assessed very differently. All lenders require is that our property is able to generate over 100% of its mortgage repayments through buy to let. It means that if we choose wisely and it is possible to invest in better properties, than we normally would be able to if it was based on our salary.
In conclusion, always remember to invest in good property. That might be the most important strategy in property investment.
