With many of Europes economies now beginning to stabilize and in some cases beginning to show good signs of growth, is it time to return to traditional investment opportunities in such things as property? The general idea is that you buy a property for yourself to live in and that the value of that investment will grow, but there are other options to property investment to consider where you can actually gain an income from those investments. Popular before the economic crash of 2008 was the concept of buying to let. It is a fairly simple process and this is how it works.
First of all you need to do a little bit of research and look for areas where you think prices are likely to rise or areas are going to undergo a lot of investment and development. Obviously the price of the property needs to be taken into consideration but what you need to look at is the possible rental value of the property as this will determine whether the bank will lend you the money to buy the property. Rather than the bank loaning money in the traditional way basing it on your salary, they lend it you based on the value of the property and its possible rental income.
Once you have acquired the property, rather than manage it yourself, the best option is to use the services of a property management company. They will charge you a small fee but will take care of all the administrative side of running the property. They are especially useful if you have began to build up a small portfolio of properties as they will take care of finding you tenants and collecting payments.
Another option with buy to let is looking at the holiday letting market. This can be especially lucrative in popular holiday hotspots like Cornwall and other coastal areas. Again, using an agent takes away the hassle of trying to manage the portfolio yourself, make sure you research property management Cornwall before making any decisions.
Clearly the main advantage of buy to let is that firstly, you are not repaying the loan because the tenant is, and secondly the value of you property portfolio is always hopefully going to increase over the years. So, with economies now beginning to improve, now may be the best time to go back to traditional investment opportunities.