Here is the extract in the form of Q&A from the published article in Connected, the magazine for Chambers of Commerce.
This is to understand the benefits of investing in property for short and long term returns and how I can help you in this process.
Q: What are the short term and long term benefits of investing in Property?
A: property investing has usually been for the long term; it can either be to supplement your income, a security for your retirement or to leave as a legacy to your family. In the meantime, you get a monthly income from the property, bearing in mind that there are ways to increase the rental income by either converting the property or creating shared accommodation if well located for example.
There are also many opportunities to achieve short term returns. Some of these strategies are:
– Trading properties: you can earn a profit by buying low, refurbishing and selling high.
– Become the funder/lender: you can fund property development projects either for a high fixed return or for a share in the equity and future income.
– Remortgage for tax free income in the future: when you have built up sufficient equity in the property, you can release some of it tax free for income – or as a deposit for your next property investment.
Q: Managing buy to let (BTL) properties can be cumbersome. What are my options?
A: Traditionally BTL properties are managed by Letting agents for a monthly management fee. The agent pays you based on any rent collected minus their fee. This is still a great way to outsource the management of your rental properties but it does not guarantee you an income.
A different option is to lease your property to an experienced property investor, such as myself. This lease agreement is drawn up by a solicitor, will guarantee you a fixed monthly rent and take away the pain of voids, repairs and additional lettings fees.
Q: Where do I invest my money in short term projects for a good return?
A: Property developers are always finding new projects or deals. These may either be renovation projects, extensions or conversions opportunities, flips (purchase-renovate-sell) or larger development projects. Why not invest in one of their projects?
Q: I am interested but where do I start and find these deals?
A: A very good place to start would be to meet people, who are active investors. One such place is the Cambridge Property Investors Network meeting, which takes place every 4th Thursday of the month at The Holiday Inn, Impington. I run these meetings and can help you to start or continue your property journey. The meetings enable you to connect with people, who are either looking for deals or who have a good deal requiring funds.
Check out www.cambridgepin.co.uk and use the voucher code ‘Cambridge’ for your free £20 taster meeting. See you there soon!
