Property has always been a popular invesment whether you choose to invest directly, by buying a property or indirectly by investing in a property fund.

Buying an Investment Property

 
There are different ways you can get a return from property investment for example: 

• Rental income
• Capital growth if the value of the property rises

Investment Property Risks

• Rental income may be less than you expected and is not guaranteed
• Increased mortgage repayments if you borrow money to buy the property and interest rates rise
• Falling property values which could give rise to negative equity
• Immediate access to your money may be difficult
• Difficulties in managing your investment property if you buy abroad

Investing in a property fund

You can also invest indirectly in property through a property fund. These funds typically invest in commercial, retail and industrial property. It has also been popular in recent years to invest in develping markets like Eastern Europe.

If you invest in a property fund, you will incur taxes and charges, including Capital Gains Tax (CGT), currently at 22% (correct at June 2009), on any profits you make from the sale of property. The advantage of this type of investment is that it allows you access the investment property market without incurring the large cost of buying a property yourself.

Advice is key to making theses decisions and at Key Financials we are ready to give you the advice and guidance you need to make the right decision for you. Contact Us