Businesses.com.au
A+ R A-

Investing In Property Without Buying A House


Bricks and mortar; it is the investment that everyone wants to be a part of, which is because it tends to be a pretty safe bet. In the long-term, the value of your investment is going to most likely rise (substantially) and in the short-term, you can make a little bit of extra at the end of each month. The problem with going down this whole buying a house route is, well, it isn’t cheap or easy.


You’ll need a hefty chunk of cash for the deposit, be in a position whereby you qualify for a mortgage loan, cover any extra property buying expenses, hire a letting manager, find the right tenants and maintain the property to a high standard, not to mention the taxes. Yeah, it can all seem quite daunting, to the point where investing in property completely turns you off.


If you are feeling this way, then don’t panic just yet because there are ways you can invest in the booming property market without actually buying - and being responsible - for a property.


Peer-To-Peer Can Be Perfect


Not everyone finds themselves in a position to become a buy-to-let landlord, but the peer-to-peer lending phenomena is a great option for those that want a slice of the property investment action. The benefits of going down this route far outweigh the risks. For starters, there is no middleman meaning the return you get on your investment is much better. Next on the benefits list is the mitigation of risk thanks to your investment is spread out among different borrowers. Of course, there is no such thing as a free lunch, but if this does interest you then go and check out Landbay, who specialise in lending money to residential property developers.


Have Fun With A Fund


So long as you do your research first, you may find that investing in a property fund is the way to go. Essentially, the way they work is by pooling together the money of different investors, which makes it very similar to buying shares. As such, it can be a pretty overwhelming arena to step into, especially if you are new to this sort of thing. However, by speaking to a specialist property investment group, this can all be clarified, which is why we recommend you see Vystal.com.au for more information. What is nice about going down this route is the fact you will have allocated fund manager that is responsible for investing your pool of money where they believe the best returns are being offered.


Time To Consider An ISA


Investing in a property ISA is pretty much identical to investing in a stocks and shares ISA, here you get to invest a certain amount in a tax year. If you go down this route and you pay your money in, it will then be pooled together with that of other investors and placed into a unique fund, which will then go toward the purchase of buy-to-let houses, usually in major cities. The major benefit of going down this route is a) your investment rises (and falls) with the value of the property and b) receives a rental income to top it all off.

Page 1 of 763