Alternative Ways To Invest In Property

The most popular way to invest in property is to buy a house or an apartment and rent it out to tenants. There’s also ‘property flipping’, which typically involves buying a property at a low price, making improvements and then selling it at a high price.

While these are reliable ways to make money from property, they aren’t the only ways.

In fact, there are a multitude of exciting ways to invest in property for those that want to broaden their portfolio or simply try something a little different.

Before you start it may be worth getting to know Letting Agents in your area to scope out average property prices for what you have in mind and what market there is for this investment type. Experienced letting agents will know exactly what you can expect from your investment in the area and how much demand you can expect to see once you are ready to go.

Here are just a few alternative ways to invest in property.

Buy a holiday home

You could make money by renting out a property as a holiday home to guests. Not only could this property be a source of income, but you could use it for your own leisure when no-one else is staying there.

For this investment to be successful, you need to buy a property that appeals to holidaymakers in an area that is likely to get a steady stream of tourists all year round. Sites like AirBnB have made it easier to advertise these properties, as well as allowing you to screen guests and make bookings online. If you don’t live near the property, you may want to employ a local property manager to hand over keys to guests and handle any maintenance that needs doing.

Invest in property shares/funds

There are lots of different property funds, one example is this Australian property opportunities fund. Whilst I would never recommend a specific investment, funds like that allow you to make money from shares in real estate.

 A number of property rental companies regularly give out shares as a way of getting more funding, while many private investors may also ask for funding. You yourself simply have to contribute the funds – it could be ideal for those with a large amount of money to invest looking for a passive income.

Rent out commercial property

Many property investors choose to rent out residential property, but you could also consider the option of commercial property. This could include shops, offices, warehouses and factories.

A perk of commercial property is that you’re able to set longer leases, allowing you more potential security. That said, you still need to vet your tenants – any company that choose to rent the property off of you needs to have a good business plan or a good previous business track record.

Rent out property for events

You could also consider buying property to rent out for events. Many investors buy up mills, barns and stately homes, turning them into space for hosting weddings and parties.

This type of investment can be very hands-on as you need to constantly be marketing your property in order to find clients willing to use it for their event. A lot of money may need to be invested into improvements in order to make your event space more appealing.