Any property you purchase is an investment, unlike, say, a new car, because
the value does not decrease significantly after purchase – it is more
likely to appreciate in value.
When considering a property investment, part of your due diligence is
getting the best advice from those who know the market inside out. This is
where a real estate agent’s expertise is essential – because they work in
the market on a daily basis, they make constant micro-observations that
inform a big picture view of the market as a whole.
Types of property investment:
When it comes to investing in commercial property, there are many factors
to consider. Commercial property has its own set of rules to follow
depending on the type of commercial business and property type. Consult
your real estate agent to discuss the details when considering this kind of
Rate of return
Depending on the type of property investment you are considering, the rate
of return will be different. An estate agent can give you a confident
estimate of the ROI you can expect, and when the return will start to flow
Buy to Let and the Sharing Economy
A prominent option is the buy-to-let property investment. Due to the
development of the sharing economy, this style of investment has taken off.
The sharing economy is a socio-economic system where resources are shared,
decentralising corporate assets, formalised by companies such as AirBnb and
Uber. Powering the sharing economy are people supplying their own resources
(their personal vehicle or spare room) that might otherwise be left idle.
The concept has made waves in real estate, as property owners recognise the
achievability of renting their spaces. Others have started seeing home
ownership as a more accessible goal, factoring in rental income to offset
mortgage costs. Another key element behind the success of this system is
technology, powerfully bringing together supply and demand on digital
platforms. This connectivity has greatly accelerated the speed of business.
On a high level, the sharing economy has had a ripple effect on the real
estate market. Those wishing to invest in a buy-to-let property should
discuss their requirements with a real estate agent to get property
investment advice from market experts.
If you are considering becoming a property investor, you should find out
more about what makes a diversified portfolio [link]. Get in touch with the
property experts at Arcus to discuss your property investment.