In 2020, there are hundreds of investment strategies out there. When it comes to the stock market, people have a wide range of strategies that work for them, especially if they want to earn a large amount of money. For property investment, there are two main strategies you should consider, and these are geared towards buy to let opportunities. As a potential investor looking to learn more about how to invest in property and the best strategies to take, you may want to keep reading to learn more about the property market and investment strategies that have proved successful in the past.
Understandably, you will need to choose an investment strategy according to what suits your lifestyle and financial situation at the time of investment. Do your research and keep in mind that if you’re knowledgeable in the area you want to invest in, you’re sure to reach your goal within no time. Before investing, remember that property investment is a lucrative opportunity. Still, it does come with risks (as does every investment), which means you should consider what you’re doing with your extra cash before purchasing a property.
Any investor out there who is looking for an investment which can continue making money without the added hassle of managing and organising a property, a hands-off investment may be the perfect strategy for you. A hands-off investment involves purchasing the property but allowing it to be a passive, side income which doesn’t interfere with your daily life.
Those who invest using this type of strategy often have a full-time job or a business they focus on during the day, and every so often has to consider their investment when they need to get something fixed. If you choose this strategy, you will most likely need to hire a property management company who will take care of tenanting, dealing with issues and anything else related to your property.
Hands-off investment gives you the freedom to make money from an investment without having to play an active part in the show – instead, you simply reap the rewards through rental repayments and capital appreciation of your property/unit. RWinvest specialises in the hands-off investment strategy and encourages investors to take this approach so that their investment doesn’t impact their life overall and leave them feeling stressed. Rather than worrying about your property and anything that could potentially go wrong with it, you can pay a monthly fee for someone else to sort this out for you.
The opposite of hands-off investment, hands-on investment involves playing an active role within the investment purchase and afterwards, too. Hands-on investment is when an investor becomes a property manager, landlord and everything in between. Those investors who work full-time or find themselves struggling for time to relax may want to avoid this investment strategy since it can be time-consuming. This is a popular strategy for investors who have multiple properties and make a large amount of capital from these properties. In doing so, you’re essentially starting your own property portfolio business, and leading the team! This strategy is efficient and works well for many but doesn’t always appeal to everyone, which is why you should consider what will fit in with your life the best.
About the Author
Olivia is a content writer for leading property investment company, RWinvest.
FREE related content from StrategyDriven