Property investment is a real estate property that has been purchased or newly build, with the intention of earning a return on the investment. Owner of such investment could profit collecting income from rent or by the future resale of the owned property, if real estate market condition allows such move.
For individuals or small companies, a property investment usually is considered a long-term decision, and could include purchase of an apartment, house or small commercial outlet.
Some entrepreneurs are engaged in the short-term property investment, where a property is bought, renovated or remodeled, and sold at a profit.
Inexperienced property investors should be aware that real estate could become a risky investment. Why? Because, real estate is an asset form with limited liquidity when compared to other investments, available on the financial market.
The majority of individual investors use mortgage leverage to buy the desired property, but we all know that property investment is really capital intensive and is highly cash flow dependent.
One can quickly run into the negative cash flow, often ending up with forced resale of the property at a loss or go into insolvency.
Individuals or small companies had hard times sometimes to find financing for desired property purchase. All kinds of financial institutions mean lenders, have minimum equity requirements for real estate investment, usually around 20% of the appraised value.
We absolutely agree that the best way to get into property investment business is by purchasing shares in real estate investment trusts (REITs), rather than investing on your own. The mentioned investment vehicles have large capital reserves (to minimizes the risk which comes from leverage) and investment strategies to allow 100% equity in the properties that they purchase.
Professional investors like real estate investment trusts, hedge funds, pension funds, etc. are able to implement strategy to recycle legacy assets that have maximized their value creation potential in order to invest in high-quality assets with compelling value-add returns.
Anyway, all professional property investment players are welcome to list their quality websites/blogs below, in our Best Financial Directory.
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Some companies involved in the real estate invest only in the high-quality office, retail and multifamily real estate.
Some are focused exclusively in the metro regions only, where they own and operates a portfolio of investment real estate.
Hotel when in prime location could be a great long-term property investment with up to 10.5% net rental.
The Shankly Hotel is a football themed hotel situated in the heart of Liverpool City Centre, and is investment that offers fantastic long-term guaranteed returns, low-risk, buy back options.
Brisbane in Australia offers good investment potential over the medium and long-term.
Brisbane is already a firm favourite among property investors, but it is poised to become an even stronger market over the coming years.
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