Property Investing

I thought I would look into the different types of investment property you can buy.  Each week I will post more about the different types and the best way to make returns on your investment.

This week I will cover investing in property off plan from a property developer.  You can find a lot of opportunities when you find local property developments to invest in.

I have used this type of investment property a lot in the past.  My first property from a property development was an inner city apartment with two bedrooms and a parking space, I was hesitant at first as this was outside my comfort zone really as usually my preferred investment type is for a first time buyer or a small renovation project.  The apartment wasn’t built it was an off plan property when I decided to go ahead with it but I had spent a lot of time researching the area, it was near a large national company that was due to expand taking on more staff by the end of the year and fairly close to a major university.  This would mean I would either get an employed worker or a fairly well off student either were ok by me for the investment as I had worked out how much I would need in rent to cover my monthly mortgage payments.  I had negotiated the price down on the apartment as it was one of the last ones in that phase of the development. I contacted a couple of local agents and they gave me a guide price for the rent on the property.

I was all set I had my potential rental market in mind, the amount that I could charge in rent and the mortgage I needed.  I bought the apartment in the summer of 2004, I have a professional couple living there at the minute and have had no problems renting it out.

The most important thing I found out about this type of investment property is that you can be left with your flat empty, choosing in the right area can make all the difference and have a long term plan, at the end of your investment will you be able to sell the flat on.  I purchased this property with the intention to keep it for 5 years, I think by the time next summer comes round I will keep this investment as the couple that currently rent are happy with the arrangement.