Strategies & Opportunities for Investing in Real Estate

A successful real estate investment relies heavily on the use of the right strategy; however, they largely depend on the requirements and desires of the individual property investor. The importance of going into an investment with a strategy mustn’t be underestimated. Your entire plan of action will be defined by the starting point of your investment journey and the outcome you want to achieve. However, this is also dependent on the amount of capital and cash flow you possess, not to mention your experience and risk-taking profile.

One of the most common to be recommended by any reputable real estate investment trust is the ‘Flip’ (short term investment strategy). This can be put into practise when purchasing an off-plan unit – a property which has not yet been built or is currently being constructed.

The unit is then sold, almost straight away, in most cases before the property has finished being built. In basic terms, this means it can’t be recognised as a property purchase because the unit is incomplete, therefore classes as a sale offering the option to purchase property. This strategy provides the opportunity for real estate investing at a low cost, leading to excellent capital appreciation rates. This is highly achievable in an emerging market where prices remain low. Then, once supply and demand has increased, the option is sold.   

When it comes to real estate investment, UK strategies are no different from those applied to during overseas and another real estate investment strategy commonly used the world over is the ‘buy-to-let’. This involves the purchase of a resale property or off-plan unit. The investor must complete the purchase and keep hold of the property for a period of 2 to 5 years or longer. During this time, the property may be rented as a holiday or long-term let to generate an income. Then, when the time is right, the property is sold.

And as any well-established real estate investment group will tell you, the real estate investment opportunities to arise from this strategy will be to either maximise on capital appreciation by keeping hold of the investment until conditions in the property market start to display more positive changes, enabling an investor to sell at the highest price possible or maximise the income generated from letting.

Opting for the latter could also provide the investor with the added bonus of a having free accommodation should they choose to holiday in the area. Remember, maintaining a second property in a foreign country involves much more management than that of a property close to your home. However, there are many real estate investment services designed to help you - from practical investment support to basic pools, garden maintenance, rental administration, financing mortgage payments and much more.

Related Articles

Related articles

  • Real Estate Investment Abroad

    It is a popular misconception that real estate investment abroad is a lot more difficult than investing in your own locality. When it comes to residential investment, almost all are focussed in the investors' own area...

  • How to Get Started in Real Estate Investing

    Before you start the process of securing a real estate investment, you must become familiar with all the ins and outs of the markets. Be prepared to carry out a high level of research, as without doing so you could stumble across a number of complex situations.

  • Commercial Real Estate Investment

    Commercial real estate investment is a field usually reserved for only the most experienced of investors, those managing huge funds, those who have worked in the field and have huge cash to invest themselves etc, but it needn't be this way...

  • Which Countries Provide the Best Opportunities in 2011

    In days gone by it has always been difficult to pinpoint which countries would present the best property investment opportunities in a given year. Today, it is even harder in some ways, but easier in others.

  • Best Ways to Finance A Real Estate Investment

    Shop around extensively for mortgages as rates and offers vary greatly from one financial institution to another. Then work towards a real estate investment strategy to best suit your personal risk level.

  • Foreclosure Real Estate Investment Strategies

    Foreclosure real estate investment offers buyers the opportunity to lock in extra value to the resale prices of their carefully selected investment properties.

  • Real Estate Investment 101

    When deciding on a real estate investment strategy, most new investors will think only of residential property, because it is seen as the simpler and least costly type to invest in.

*This page is provided for information purposes only and should not be construed as offering advice. Flex Profit Hub is not licensed to give financial advice and all information provided by Flex Profit Hub regarding real estate should never be treated as specific advice or regulations. This is standard practice with property investment companies as the purchase of property as an investment is not regulated by the UK or other Financial Services Authorities.