Property Investment Businesses facilitate the purchasing of properties with the intention of earning a return on the original investment. Most companies are small and involve speculating individuals.
Many people initially start by buying a small flat or one-bedroomed house which needs renovating, as these are usually cheap to buy and give a good return after renovation. These can sometimes be purchased in property auctions and Auctioneers will start the bidding relatively low in order to engage bidders.
Builders tend to be frequent visitors to auctions as they realise it is a good way of making huge profits in a relatively short space of time. They are able to carry out the renovation themselves, thus saving themselves considerable amounts of money by alleviating the need for extra workforce and trades people and craftsmen. Once the first property has been completely renovated, it is either put on the market to sell or will be advertised for rent. This give a regular income and the rent that the tenants pay is offset against the mortgage on the property. In doing this, it allows the property owner peace of mind in that the mortgage is being paid but as the house increases in value (as it usually the case, except in extreme cases of property slumps) it is continually making money for the owner.
After the completion of the initial property, they usually get the feel for doing up properties and decide to purchase another, moving up the property ladder as they do, in terms of type of house and the size. Some continue to do it as a hobby alongside their usual job, but many decide to become full-time property investors and make a career out of it.
Investment Promotion Agents are non-profit organisations (they can also be a government agency) who focus on promoting investment to a specific country or area within a country or city. There are several factors they need to employ in order to do this; such as arrange meetings with potential investors and real estate developers. They need to research their market extensively, drawing on data, relative to the area by finding out what the local average wage is; quality of local schools and colleges, employment opportunities etc.
Equity Sharing is also known as shared ownership of a property of dwelling. It is an incentive scheme, a way of attracting people to own their own home by purchasing a percentage of the property. This is a huge motivator for many would-be homeowners who are unable to obtain a mortgage on the whole property. The remaining amount is usually obtained by the builder (usually a national shared-housing organisation) or it could be a private investor or landlord. With the national average reaching £250,000 for a modest house, it’s not surprising that many couples are choosing to buy this way as mortgages are proving to be too expensive for them.
Real Estate Exchanges is a process whereupon you directly exchange your property in return for another. There are of course many factors to be considered such as type of property, global location and national and local area of the dwelling, amount of rooms and their sizes. It obviously has to be a ‘like-for-like’ property and both owners have to be in agreement and completely satisfied with what they are receiving in exchange for theirs. There are websites and listings of properties available for exchange. A good place to source these would be in an online business directory such as such as thebusinessindex.com as this gives contact details and addresses of various local companies offering this service as well as those on a national and global level.
Many businesses and real estate investors decide to become property Syndicators and enjoy the potential benefits they can reap by pooling their money and purchasing property. It is a way of using savings and reinvesting in company funds so that their business is making a profit and it is also regarded as a company asset. Although primarily it is businesses and real estate investors who invest in property syndications, it can also be individuals or groups of friends who see an opportunity of speculating to accumulate’ and decide to purchase a group of houses or an individual property in the hope of making a profit after renovation or re-selling it on after a certain period of ‘sitting’ on it until house prices peak.