Types of property investment

Direct investment

Direct investment in the residential property sector, by buying a house or apartment, is an attractive option for many.

It should continue to be so as long as rental incomes and resale values remain high.

The disadvantages:

• You are solely responsible for the management of your property
• Realising your investment may take time if the market slows

Tax incentivised investment

Tax incentives for property investors encourage development or renewal in certain areas, such as urban and rural renewal schemes and seaside resort relief.

If you are investing in this kind of property, consider more than just the tax break.

Location, good rental potential and access to transport and amenities should also factor in your decision.

Managed property funds

Advantages:

• A professionally managed fund, so you don’t have to buy and manage a specific property
• You can manage your risk by spreading the investment across a range of properties
• More affordable, without the outlay of a large deposit or mortgage

Protecting your investment

Once you’ve invested your money in bricks and mortar, you’ll need to make sure that investment is secure, and that you’ve managed the risks appropriately.

• Find out more about home insurance
• Find out more about commercial insurance