2 Major Types of Investment Properties

Paper house in a green field

If you are interested in property investment, it is advisable that you learn about the different options available before you even start. Every decision that you make has its pros and cons, and as such, your passion, goals and budget should determine your choice.

Vystal Group wants you to learn about the different property investment opportunities in Australia.

1. Buy to let investment properties

These include the properties you buy and rent out for a particular amount.

Pros

Profitable – If you keep making profits every month, then you will eventually break even. Anything made after that will be pure profits from the investment. Additionally, you can get a regular income as long as you have the property.

Cons

A Costly Investment – The initial investment required, combined with maintenance costs can be high. Additionally, the estate agents and the tax department does not make it easier for you. That delays the break even time, making a buy to let property a costly investment.

2. Buy to sell investment properties

With this type of investment, you buy a property and keep it fora few years before selling it at a higher price.

Pros

Quick Return on Investment -You can sell your property shortly after obtaining it and still make a good profit out of it. Additionally, you no longer have to worry about the maintenance, taxes and other associated problems once you sell the property.

Cons

High-Risk Investment  With this kind of investment, there are no guarantees on the return on investment. It all depends on the market. That means you can either make more or lose all of your money in the trade.

Before making any investment property decision, it is always advisable that you seek professional advice. In addition, ask experienced investors and agents about your property investment transactions, maintenance options and management requirements. This will ensure that you end up with a property investment that suits your budget and financial expectations.