Does property investment permanently exclude some?
An exclusive club that promises riches but, infuriatingly, is only open to those who already have wealth. This is the view that many people can have of property development but, as Heartland Group MD Tamsin Harrison explains, this doesn’t always have to be the case.
From designer handbags to virtual currency, the world of investment has moved well beyond the realms of traditional stocks and shares. However, when it comes to property, many can’t see beyond the investment in their own home. The idea of putting money into building a property portfolio can seem a pipe dream; and with the average home costing upwards of £220,000 it’s not hard to see why it can seem cost prohibitive. People assume that a property portfolio needs to consist of the equivalent of a small village, a block of flats, or a sprawling complex, that returns are small and not worth such hassles; from dealing with developers to finding suitable tenants, and even arranging a management company.
In reality, with expert advice, an active portfolio can be achieved for as little as £50,000, with many finding significant enough dividends within two years or less to begin having serious conversations around early retirement.
An important starting point, as with all investments, is to ask the right questions before beginning the process; chief among them, can you afford the money you’re investing? If you wouldn’t put it into stocks or shares don’t put it into a property portfolio. Whilst it is possible to ‘dip your toe in the water’ with stocks, a property portfolio doesn’t have a starter kit as such, although it can be possible to invest in a consortium as opposed to going solo. As with any investment there are risks but, with the right advice and expertise by your side, it can prove a gamble more calculated than many.