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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:

  • Residential
  • Commercial
  • Land development
  • Property rentals

Commercial property

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 property investment.

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 in.

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.