There isn’t a one-size-fits-all approach to property investment. You have to decide what you want from your investment before you sign on the dotted line. And traditional buy-to-let or buy-to-sell investing isn’t for everyone.
Here’s what to consider if you’re looking to alternative property investment opportunities:
Before you invest, you’ll have to decide how much capital you want to commit to a venture. Alternative property investments have a lower point of entry than traditional buy-to-let, meaning in some cases, you can access the U.K. property market for as little as £10,000. You also won’t have to factor in any other costs to cover void periods, maintenance, or stamp duty. Property Bonds and Developer Loan Notes generally offer fixed rate returns, so you’ll have an idea of the return on investment (ROI) you can achieve from the outset.
Level of Involvement
Alternative property investments are ideal if you don’t have the time or experience to deal with everything that comes with being a landlord. Properties are managed entirely by professionals, and you don’t need to be involved with the day-to-day running of your investment. Your money is put to work straight away by the property developer you invest alongside.
Consider how long you want to invest
Property Bonds and Developer Loan Notes are primarily aimed at short to mid-term investors, with term lengths differing between opportunities. Usually, you can invest from a minimum of 12 or 18 months up to 7 years, and flexible options mean you can choose your own timeframe. The latter option typically gives you the opportunity to exit on the anniversary of the contract.
Review your goals and strategy
Regularly reviewing your goals and strategy is needed to adjust and track your investments.
You’ll be kept up to date on how your property investment is progressing, and of new Property Bonds and Developer Loan Notes available.
It’s worth taking the time to review what you want from your investments, so you don’t miss out on opportunities, and can judge whether they fit your plan.