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Rental income is the only income stream from property?

So, you think that the only income stream you can get from property is the rental income?

Not so, says Christine Hertoghe, host of the Cambridge Property Investors Network.

Why do property investors generally invest? They are either looking for short or long term income or a combination of both.

Let’s look at short term sources of income through property first:

- this can be done by trading properties or in other words buying low and selling high. If you buy cheap, your profit is then assured from day one - this is an essential strategy for property investors.

- another way is to add value to the properties you buy or control: refurbishing and/or extending properties is a good start. These can then be put back on the market or can be remortgaged to release some of the equity generated. The beauty is that this income is tax free - you do not have to pay income tax on loans!

- be the estate agent: many investors do not have time to look for good investments but are prepared to pay a fee to the sourcer of a good property deal

- be the advisor: once you have the knowledge, you can help other investors with it and be paid for that service

In the long term:

- the conventional rental income: it is important to get a monthly return from your properties - number crushing is essential.

- changing the house into shared accommodation can increase your rental profit many times: these are mainly student lets, professional lets or housing benefit tenants

- the new Rent2Buy strategy for income: ensuring an upfront fee and a premium rent when you agree to sell your property to a tenant.

- the conventional sale of the property. Once you have benefitted of good capital appreciation or in other words your property has increase in value, you may decide to sell the property to release the equity - tax planning is a good idea beforehand.

- remortgaging your property once equity has been created provides you with tax free income or could serve as another deposit to increase your portfolio.

As you can see property investments can give you many different types of income, some more labour intensive than others and you may want to explore a few of these strategies.

The pin meetings will help you get to grips with these different strategies as the speakers are all property investors themselves and are speaking from their own experience. Click on the link for further information.

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