Become a Property Investor
Being a Property investor is an exciting and enjoyable job, very different to a 9 to 5 office job. Its ideal for those who can cope with occasional stress and are great at self motivating.
The work you may need to put in as well as the risk you take with the money you put in can be quite high, but the rewards can be great. The higher the risk the bigger the potential rewards of course, so if you like the idea of taking a risk then becoming a property investor could be for you but there are different types of property investors.
Some people trade property almost like a commodity, buying and quickly selling property adding a bit of value in between and potentially gaining a good profit each time. This is well suited to people who like quick trades and have the knowledge needed to let them buy the right properties and then find the right way to sell them for a profit.
Others take on property as much longer term investments either to do large amounts of work upon or as an investment that they will earn rent or other amounts from long term.
Property includes residential, commercial, agricultural and industrial property and land. It may well involve changing usage which may be where the most potential profit is; if you can buy something, say a 6 bedroom house for which there is little demand and then increase the value by changing it into something there is a demand for locally, such as flats and a shop.
Some property traders will simply be traders who will buy property, have others do the work they think is needed, and then market and sell the property at a profit. The way a property is marketed can make a big difference to value as well, and for some property traders this is their greatest skill. Perhaps buying a property undersold at auction and then promoting it so the right people most likely to pay a large amount for it are aware of it and convinced of its value.
Other property investors like to get stuck in themselves and do much of the work needed on a property themselves to save money and increase their profit. This often means they can get profit out of a property that another property investor couldn’t after paying contractors to do the work.
When you first become a property investor you may have a small amount to invest but want to build a property portfolio long term, you could also want to work up to larger properties as time goes by.
The advantage of larger properties is that there are less people who can afford them in the first place, major projects may only have one or two people looking at them so the price wont be as inflated and the potential profit will be more. Larger projects also mean more risk though as you have a lot tied up in one project which could always go wrong.
For a secure long term income many property investors like to build a portfolio of properties to rent out, the bigger the portfolio the lower the risk and you may want to aim for a broad portfolio of different property types.
Your portfolio can be like a second pension to you in your retirement with regular rental incomes coming to you and you can continue to manage and maintain them yourself or get an agent to do this while still leaving you a good profit.
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