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Alternative ways to invest in Property

Property is often considered to be one of the more traditional entities to invest your money in. Throughout the UK investors are snapping up homes, but not to use as their primary residence. Properties all around the country are being purchased in order to generate income through a number of different avenues, including:

  • Profiting from appreciation
  • Taking advantage of tax benefits

In short, if you purchase a property for the sole purpose of making a profit, rather than using it as a personal residence for you and your family, that home is considered to be an investment property. Typical investment properties include:

  • Residential rental homes
  • Commercial premises

Unlike second homes, investment property mortgages tend to pose higher interest rates. They also tend to require larger deposits.

Property investment options

Whilst investing in residential, commercial and buy to let properties may not seem that broad on the surface there are a number of options under the surface. Money-making options from purchasing an investment property include:

  • New builds
  • Renovations
  • Conversions
  • Managing and letting

The benefits of purchasing an investment property

Investing in property is one of the most popular wealth-creation vehicles. Whilst purchasing an investment property is a popular choice for many keen to grow their yield, there are actually a number of different ways to make money from property.

Purchasing an investment property can work for you whether you want:

  • A continuous flow of income
  • A lump sum return in the future
  • A pension plan
  • A short, medium or long-term gain

Can you invest in property without owning one?

It could be assumed that, to invest in property, you will have to buy one. Whilst traditional forms of property investment tend to involve great expenditure when putting down a deposit or funding a conversion, there are options available to those who cannot afford to purchase a property or simply do not want to. 

Companies such as Wellesley are facilitating a new wave of property investment for those who fall into this bracket. Wellesley allows investors to support residential building via their Wellesley Property Bonds, eliminating the need for a deposit or mortgage associated with traditional property investment and still allowing investors to make a return.

Investors can apply for, access and manage their Property Mini-Bond accounts online. Wellesley offers you the opportunity to invest your money into property backed loans and in return receive a fixed rate of up to 6.00% per annum gross. The Bond is an ideal choice for an investor seeking a fixed secured investment with regular interest payments.

It is important to remember that as with most investments, there is a risk to your capital and interest, despite the security arrangements in place.

+ Find out more about Wellesley

+ Download a brochure

The Wellesley Property Mini-Bonds are issued by Wellesley Finance Plc. Your capital is at risk and interest payments are not guaranteed. Investment is not covered by the Financial Service Compensation Scheme (FSCS). The Property Mini-Bond is non-transferable and cannot be held within an ISA account. To view the full risk statement click here.
Disclaimer
The contents of this article are for reference purposes only and do not constitute financial or legal advice. Independent financial or legal advice should be sought in relation to any specific matter. Articles are published by us without any knowledge or notice of the circumstances in which you or anyone else may use or rely on articles or any copy of the information, guidance or documents obtained from articles. We operate and publish articles without undertaking or accepting any duty of care or responsibility for articles or their contents, services or facilities. You undertake to rely on them entirely at your own risk, and without recourse to us. No assurance of the quality of articles is given or undertaken (whether as to the accuracy, completeness, fitness for any purpose, conformance to any description or sample, or otherwise), or as to the timeliness of the publication.

 

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