Investment Options: Is Real Estate Investment Right For You?

If you have grand designs on property investment, you will need to get your finances into gear. You can invest in property in a variety of ways, whether you decide to buy a home or commercial property directly or invest in another way.

If you prefer not to stump up enough cash to buy a property, you can invest in Real-Estate Investment Trusts (Reits) which are investment funds that solely invest in property.

They are easier to invest in and easier to get out of, because as a pooled fund, the money of a number of investors is used to buy property that the fund then owns, and you are paid returns based on how the investments are doing, and the level of rental income generated by the properties within the trust.

Buying a new build off plan can be a risk, as the property might not end up how you expected, or the developer could even go bust. You might struggle to sell it once it is finished, meaning you will be stuck paying the mortgage, and you won't know what the area it's built in will end up like.

However, they can be cheap investments that you can sell on at a profit, and you can add value to the property by decorating or furnishing it.

Investing in property will come with a variety of costs. These include solicitor fees, estate agency fees, Land Registry fees, surveys, mortgage fees, Stamp Duty and setting up insurance.