There is more than one way to skin a cat, or so the saying goes, and there is more than one way to invest in property. All it requires is a bit of lateral thinking, looking at some tried and tested alternative options, and then seeing what works for your current situation.

As long as you understand a few key concepts and are clear about your goals, investing in property can work for you.

Here are three ways to invest in property:

Purchase residential or commercial property to rent out

This is the traditional way to invest in property. Whether it is a residential or commercial property, the investor generally will not want to live in it, or use it for their own commercial purposes, and is purchasing the property with the sole intent of renting it out.

Properties for investment purposes come in all shapes and sizes, and each one will require different levels of financial input. Therefore, each property will need to be considered on its own merits and risk, and what returns are likely.

Most investors, particularly if they are starting out, will look at purchasing a residential property, but there are excellent opportunities to be had from commercial properties too.

Rentvesting

This type of investing in property is gaining in popularity, as it allows you to buy a property you can afford, while living in an area which is more suitable to your situation or your lifestyle wants. For instance, you may not be in the financial position to buy a house an area that is in a good schools’ catchment area, or in another desirable area, such as near the beach or in the city.

Many younger people use rentvesting to get on the property ladder; they are happy to live at home for a couple of years, while getting an income from their investment and living relatively cheaply. There is also the possibility of leveraging this property for finance for another property later down the track.

Turn your home into an investment

If you own your current home, even if you have finance on it, there are ways in which you can turn it into an investment.

For instance, if you have to relocate, or you are looking to downsize, it might be worth you renting your home out and getting an income from it, rather than selling it. Alternatively, the property may allow for building a granny flat, and it might be worth increasing the property’s value in the long run, while gaining a rental income interim.

Whatever way you chose to invest in property, the key to successful property investment is making it work for you financially, and being aware of what is and isn’t tax deductible.

We always suggest you speak to a financial specialist who can explain what you need to consider and what your different options are for your financial situation.

Over our 40 years of business, we’ve helped thousands of people realise their dreams through property. Our aim is to make your property investment journey as easy as possible, so you can enjoy the things in life important to you.

Get in touch you want to know more about our property management services or investing in property. Simply give us a ring on 02 4954 8833, send us an email to mail@apnewcastle.com.au or pop into our Cardiff office for a chat.