Essential guide to ‘hands off’ property investment

Essential guide to ‘hands off’ property investment

There are many different property investment strategies for investors to choose from, although the ‘hands off’ style is certainly experiencing a boost in popularity. Is this type of property investment right for you? What exactly does it entail? And crucially, what key benefits does it offer investors?


What is it?

There are various descriptions for the ‘hands off’ property strategy which include the likes of armchair investor, passive investor and pooled vehicle investor to name but a few. In simple terms you acquire part of a development (which is already built or in the process of being built) where the renovations and day-to-day management of the finished project is completely handled by the property developer or management company.

This ensures you have no responsibilities with regard to: –

  • Finding tenants and dealing with tenancy issues
  • Maintaining properties
  • Legal issues that a traditional landlord may face
  • Day-to-day management and stresses


A ‘hands off’ approach will suit those who want total control over the choice of property asset they purchase, but do not have the time or inclination to manage day-to-day tasks such as tenants and maintenance issues. Allowing a third party to manage an investment gives investors more time to research future investment opportunities, strategise on how to grow their portfolio further, and of course to take advantage of some of the benefits hands off investments offer (such as holiday usage with hotel rooms). Building a relationship with a property developer or management company will put you in an attractive position to invest at an early stage in their future investment opportunities (which is usually when the best returns are on offer).

Types of investment

A “hands off” property investment strategy can take in a variety of different assets including: –

  • Student Accommodation
  • Care Homes
  • Luxury Hotel developments
  • Apart Hotels
  • Professional Apartments

In simple terms, where there is a long-term income stream there will be opportunities to invest while making full use of a property developer or management team to look after the finer detail. The key to this type of investment is identifying a market sector with a sustainable and robust level of demand (hence why student accommodation, care homes and hotels provide ideal market sectors).


As with any investment there are risks that need to be considered and balanced against the potential returns and benefits on offer. Some issues to consider when looking at investments include: –

  • Making thorough Due Diligence checks
  • The reputation of the management company that has been chosen
  • Choosing a trustworthy property developer
  • Transparent reporting of asset performance
  • Legally binding agreements
  • Existing / previous Investor feedback
  • Developer’s track record in this field
  • Ensured use of escrow for stage payments

Even if you are recommended a property developer/management company by a trusted acquaintance it is essential to carry your own research to ensure everything is in order. If you are unsure where to even start looking, Property Investment Consultants tend to work with the same developers year in, year out, who they have already thoroughly researched (after all, their reputation depends on it) which can provide an excellent place to start.


The benefits of ‘hands off’ property investment are plentiful and include: –

  • Lack of day-to-day involvement
  • Assured rental returns so you know what yields to expect and when
  • Professional management of your assets
  • It is common to be offered a resale option at a predetermined price (usually 125-150% higher than the original purchase price)
  • Access to future developments/investment opportunities
  • Opportunity to buy part of a development where the location and target market has been carefully and thoroughly researched by professional, experienced developers (allowing you to take full advantage of others’ skills in maximising returns through property)
  • Increased opportunities to spread your portfolio and reduce your risk

The ability to buy units in different developments across varied markets and locations for a relatively small initial investment is perfect for those looking to put a “toe in the water” while conscious of keeping any risk to a minimum.


The “hands off” investment approach is favoured by many investors who have limited time to research potential opportunities and even less time to get involved in day-to-day management. Handing over the day-to-day management of your property assets to an experienced company frees up more of your time to look at the wider picture and to enjoy life (no doubt one of the fundamental reasons you want to invest in property to start with). In effect you are taking a top-down approach, picking and choosing the asset you invest in while the day-to-day administration is taken out of your hands.

Further reading:

  • How to choose a developer
  • 3 property sectors that are booming
Posted in Hand off Investment, Property investment strategies | Tagged , , , , | Comments Off on Essential guide to ‘hands off’ property investment

Beginners guide to a property joint venture

Beginners guide to a property joint venture

Have you seen a property development just out of your financial reach? Have you got the skills to create a much sought after property development but perhaps lack the finances? Would you prefer to spread the risk of investing in high-value property amongst other partners?

These are probably the main questions you will ask yourself if looking for a joint venture partner in the future. However, there is much more to joint venture property investment.

What is a joint venture?

While each individual property joint venture is different in detail, in simple terms a joint venture is a situation where partners wish to maximise their funds, particular skills set or spread the risk amongst other investors. There are many different types of joint venture which we will cover below but in simple terms you are either maximising your resources or you are spreading the risk.

What types of joint ventures are available?

There are many hybrid joint ventures available but in simple terms they can be broken down into the following:-

  • Joint venture with a business partner such as family member, friend or colleague. Each partner will invest on an equal footing thereby not only spreading the risk but also increasing the capital available to acquire assets.
  • Investing with a skilled partner such as builder, architect or developer. This type of joint venture will see one partner investing capital while the other such as a builder, architect or developer is in essence investing their own time, skills and resources. It can sometimes be difficult to agree an equal split of funds, time and resources but investing with a skilled partner can be extremely productive.
  • Joint venture loan provided to a successful and experienced property development company. In simple terms you are investing in the experience, contacts and the knowledge of a successful property development company. You will provide the capital to fund the project with a split of projected profits agreed before any work begins.
  • Joint venture with an investor who will invest in your property project where perhaps you do not have the financial resources available to fund yourself. The investor can take the guise of a hands-off member of the project or perhaps they also have some skills and resources to inject.

Each of these joint ventures can be structured via a partnership, limited liability partnership or a limited company depending upon the specific circumstances.

The benefits of joint ventures

As we touched on above there are some very obvious benefits of joint ventures which include:-

  • Spreading the risk
  • Greater combined financial resources
  • Maximising your specific skills set
  • Raising additional capital
  • Maximising return on your available investment funds

There are so many different types of property investment available such as buy to let, office premises, commercial property, etc that it is vital that any joint venture agreement reflects the underlying investment asset.

What are the risks?

We all appreciate that with any potential investment return comes a specific degree of risk. There are further factors to take into consideration with regards to joint ventures which include:-

  • Potential maximum liability per member
  • Watertight legal agreements
  • Exit strategies
  • Arbitration option upon shareholder voting deadlock
  • Choosing reliable and experienced joint venture investors

Finding a reliable and experienced joint venture investor may come through personal experience, recommendations or because of their past reputation. This is a vital part of any joint venture investment, finding the right partner.

Posted in Joint Ventures, Uncategorised | Tagged , , , , | Comments Off on Beginners guide to a property joint venture

How to use property to create an income within two years

How to use property to create an income within two years

Do you have some spare capital which you would like to invest and create an income stream? Are your savings earning minimal income on deposit and losing in real terms when taking into account inflation? There are a number of ways in which you can use the property market to create sustainable long-term income

Setting your targets

If you don’t have targets then how can you hit them? Sit down and think through exactly what you would like to earn after two years and then be honest and assess whether this is feasible. Issues to take into consideration include: –

  • Be realistic and err on the side of caution if anything
  • Set yourself staged targets
  • Decide what you would like to earn after two years and then work your way backwards
  • Are you financially secure to be able to invest in the longer term
  • Do not take undue risks to hit your target – slow and steady is more sensible

We would all like to create a significant additional income stream in the short to medium term but we have to be realistic and sometimes scale back our expectations.

Investment opportunities

We all have different skills, we all have different financial situations but there are a number of investment opportunities in the property market. At the end of the day it will come down to whichever ones you feel more comfortable with and whether you have advisers around you to help. Investment opportunities take in all kinds which include:-

  • Hands off developments such as hotel rooms, care homes and student accommodation
  • Buy to let investments
  • Joint venture opportunities allowing you to scale up your exposure
  • Releasing equity in your home to expand your property portfolio
  • Refurbishing an old property can significantly increase rental income
  • Flipping properties, often bought at auction, can prove to be lucrative
  • Homes of multiple occupation (HMO) offer very attractive rental yields

As you’ll see from the above list these investment opportunities have very different characteristics thereby ensuring there is something for everybody whether you are hands on, hands off or in a position to refurbish/redevelop existing properties.

Cold hard facts

When looking at creating an income stream from your property assets you will need to look at the cold hard facts. The best way is to break down projects and investment opportunities into micro-considerations:-

  • Are you possibly switching long-term capital growth for short-term income
  • Are there better opportunities elsewhere perhaps away from your local market
  • Do you have the time to be a hands-on investor
  • Is your target income stream feasible without undue risk
  • Are you diversified or overexposed in one particular area

It is also sensible to take into account potential exit strategies from individual investments as you may wish to liquidate your assets in the event of retirement or any other life changing situation.

Long-term cash flow

As with any investment there will be an initial upfront payment and with refurbishments and redevelopments there may be a period when your asset is non-income producing. You need to weigh up the short term situation against your medium to long term plans to build an income stream. It is also worth noting that when redeveloping properties or redecorating houses there is no need to go over the top with regards to your expenditure. Again, you need to balance this additional investment against the likely timescale and long-term return.

Posted in Uncategorised | Comments Off on How to use property to create an income within two years

7 reasons why you should consider hotel room investments

7 reasons why you should consider hotel room investments


You may have heard of hotel room investments but who sells these? What is the minimum investment needed? What exactly do you get for your money and what yields are available? Whichever questions immediately spring to mind one thing is certain, the benefits hotel room investments offer can make them a very attractive option for savvy investors.

So why consider them?

Low cash entry levels

Many people automatically assume it will take a significant level of capital to buy a share of a hotel development. In reality this is not the case with as little as £15,000 needed to buy a fraction of a hotel room as a long-term investment. These low cash entry levels are very attractive to investors, allowing them to build a diverse portfolio across a number of different investments that spreads any risk involved, (rather than putting all their eggs in one basket with just one large property investment). It also means there is no need to attain a mortgage (as will often be the case with a traditional buy to let property).

Fixed returns

You can typically expect hotel room investments to achieve fixed annual returns of 7% – 15% for a guaranteed period of up to 15 years. Whatever returns are being offered with a particular development, these usually remain the same whether you purchase just a fraction of a room or an entire suite. This means that hotel investments can give attractive rates of return for every level of investor (hence their increase in popularity).

Holiday usage

One of the more exciting benefits of hotel room investments is the inclusive holiday usage investors receive. Although this can vary from project to project, many of the 4* and 5* developments do offer this, which gives investors a fantastic holiday home every year in addition to the returns we’ve already talked about. The opportunity to enjoy some quality time away from the hustle and bustle of everyday life as an inclusive part of an investment is certainly a welcome bonus.

Building a varied portfolio

While there is no set amount required to build up a property portfolio, historically anything in the region of £50,000 plus has been deemed a good starting point. Investing in hotel rooms gives you the ability to split this pool into smaller lots allowing you to introduce an array of different investments in different parts of the country or even dotted across the world. This will ensure that your portfolio is not overexposed to one particular development, one particular country’s economy or one particular style of hotel.

Hands off investment

The ability to invest in a hotel development with a guaranteed rental return without the hassle of day-to-day management should not be underestimated. Leaving such day-to-day tasks in the hands of the experts ensures maximum efficiency, maximum return and increases the potential for long-term capital growth. If you want to simply place your funds in a rewarding investment whilst avoiding tenancy and maintenance hassles, hotel development investments could be ideal for you. This is one of the key reasons why they attract the attention of experienced and relatively new investors alike.

Living the five-star lifestyle

The ultimate aim of investing in property is to increase your cash flow through a passive income, allowing you to take a step back from the daily grind and really enjoy life. Hotel investments are a great way to provide a luxury life style today, whilst also building capital for your future. You can pick and choose the location of your hotel room investments based on your long term investment criteria, thereby enjoying perks such as inclusive holiday usage on a regular basis in a variety of locations. Choose your developments carefully and you could significantly increase your annual holiday time.

How do hotel developments stack up against the traditional buy to let?

We’ve all been there, long winded detailed research into a dream buy to let property only to be gazumped at the last moment. Endless expenditure on redevelopment of that elusive buy to let asset only to see costs spiralling out of control and your investment payback period constantly extended. Hotel room investments certainly offer a simpler alternative and with a growing market there are plenty of opportunities to choose from. When you also take into account the lack of hands-on management it is no surprise that more people are considering this particular path.

Further reading:

Which property investment strategy is right for you?

Essential guide to hands off property investment

Posted in Hotel Investments | Tagged , , , , | Comments Off on 7 reasons why you should consider hotel room investments

Six reasons you will never make enough income through property investment

Six reasons you will never make enough income through property investment

Are you a perfectionist looking to invest in the property market? Can you maintain control of your spending on renovations? Are looking to maximise your income or create a dream property? These are just some of the factors which you need to take into consideration when looking to create an income stream from your property investments.

It may sound a little bizarre to suggest you will never make enough income through your property investments because many people do. However, there are a number of issues which you need to be aware of.

Don’t treat your investment property like your home

Always remember that you are not creating a dream home you are building a portfolio of property investments to create a long-term income stream. There is no point investing enormous amounts of money installing the latest gadgets, following the latest kitchen trends and creating something of a palace. The fact is that tenants will not treat your property as they would their own, your property will suffer from wear and tear, things will need to be replaced and you should look at durable as opposed to luxury.

Be realistic with your calculations

You need to be open-minded with regards to specific areas and specific markets which you invest in. Do not forget that the property market goes far beyond your local comfort zone and there may be better rental yields available further afield. No matter how detailed your calculations are you do need to maintain some “headroom” for unforeseen costs which can hit you hard. In general, rental yields in excess of 7% are seen as “comfortable” while rental yields below this figure offer little room for error.

Losing your bottle

The investment arena is littered with investors who have done their due diligence, waited a long time for their perfect investment yet for some reason they lose their confidence at the last minute. While you will still need to be careful, look ahead and take into account any potential issues in years to come, if you have done your due diligence and everything is fine then what is stopping you? Far too many investors are overcautious and while it is dangerous to be overconfident it can be just as costly to be too cautious. If an investment ticks all the boxes then what is stopping you?

Controlling your refurbishment budget

As we touched on above, there is no point installing the latest gadgets and the latest fashions in your property if this diminishes the long-term return. The more detailed research you do into the cost of refurbishing a property to a good standard the more realistic your budget should be and hopefully avoid any costly shocks in the future. The vast majority of relatively new property investors will likely go over their budget and while not always the end of the world it will reduce your return. Work out a budget, compare this with the potential rental income and stick to your plan.

Don’t underestimate maintenance costs

To the inexperienced property investor it is simply a case of offsetting the cost of your finance against the rental income and pocketing the difference for your everyday living. Unfortunately, things are not that simple and there will be an array of different costs as a landlord which includes insurance, rates and legal costs all of which will come off your bottom-line profit. You should be fully aware of what you are letting yourself in for, what you may have to spend and whether indeed after taking this into account the property in question is viable.

Refusing to spread the risk

At any one point in time an investment could look extremely attractive yet who knows what the future holds. There may be issues with the local economy, there may be issues with the employment market or crime can sometimes taint the reputation of an area. Putting all of your eggs into one basket is a potentially high risk/high reward strategy which can create a significant return in the future but it could also go wrong. Hands off investment opportunities allow you to pick and choose an array of different investments for a relatively small amount of money thereby spreading the risk and handing over the day-to-day management to those with hands-on experience.

Posted in Property investment strategies, Uncategorised | Tagged , , , , | Comments Off on Six reasons you will never make enough income through property investment

How to choose a property developer

How to choose a property developer

So, you have decided to invest in the property market? You are looking at a hands-off investment approach and a reputable development company? Finding a trustworthy developer is easy in principle but perhaps not as easy in practice. We will now give you a few pointers to help you find and property developer/investment consultancy that you can trust.


Reputation is the key

Any investment company lives and dies by its reputation therefore you need to look at the history and the feedback of any potential property developer/investment consultancy. Factors to take into consideration include:-

  • Use a property investment consultancy to find the best developers and make use of their due diligence and fact they will need to maintain their own reputation going forward
  • Speak to past investors for their feedback, opinions of the developer and comments on the quality of work
  • Visit the site of the proposed property development and ensure that all is in place
  • Legal agreements – always ensure you have them checked over by legal advisers
  • Use Google and other information portals for any press comment
  • Check out the more popular property forums for practical advice and feedback – it is not so easy to control negative feedback with the Internet

What types of investment do they offer?

This is very much a situation of “horses for courses” because some property development companies will specialise in particular types of investment. It is therefore vital that the developer is perfectly matched with the development and type of investment to maximise investor returns. There are a number of considerations which include:-

  • Check out the specific returns from individual developers
  • Compare and contrast potential returns against the sector average
  • The early bird catches the worm – early-stage investors tend to get the best deals with developers very keen to raise funds;- as more investors come on board the need to enhance investor deals is reduced
  • Financing options – don’t automatically assume you can’t afford the investment as there may be staged financing opportunities
  • Match the investments on offer with your investment criteria such as student accommodation, care homes and hotel rooms

Is there an exit strategy?

It is all good and well finding the “best investment” in the world but if there is no exit strategy and no easy way to liquidate your investment in the future this could significantly reduce any potential returns. The more potential exit options available the greater chance of maximising your return and releasing your funds for other investments in the future.

An exit strategy is often overlooked by less experienced property investors but it is a vital element of any investment strategy. If you are not able to liquidate your asset as and when required why would you invest?

New Build v Renovation

New build developments and renovations can look identical when they are finished but there are a number of factors to take into consideration. A new build student accommodation, hotel or care home may take some time to attract customers compared to the redevelopment of an existing property which has a reputation from years gone by. For example, the renovation of an existing, tired hotel with an excellent trading history could be considered a safer investment than a new hotel build with no trading history.

You need to take into account the relative attractions and security of these different developments and the investment payback period.

Posted in Getting started in property investment | Tagged , , , , | Comments Off on How to choose a property developer

UK property investments are far more affordable for investors with Fractional Ownership

UK property investments are far more affordable for investors with Fractional Ownership

Fractional property ownership has increased dramatically in popularity as the cost of real estate continues to rise. There are many benefits to this style of investment which allows you to invest in property for a relatively small outlay. Whether you are looking to introduce a new type of property asset to your portfolio or complement your existing assets there are many benefits to fractional property investment.

The structure of these investment vehicles is very straightforward with specifically created companies owning the property freehold to the underlying asset. Each investor is then invited to acquire one or more parts of the freehold dependent upon their personal circumstances. This very simple structure is one of the major attractions for many investors.

Excellent returns – no mortgage required

For as little as £11,500 you can acquire fractional ownership of a property investment requiring no mortgage. This relatively small entry-level figure will allow those with limited capital to invest in property which may normally be out of their financial reach. However, remember that you are not limited to just one share of a fractional ownership property…you can buy multiple ‘fractions’, increasing your returns.


Diversifying your property investments across an array of different assets using traditional investment methods can be expensive. Fractional ownership allows you to minimise your risk and maximise your potential returns across a number of different properties. This style of investment allows you to put together your own property jigsaw taking in different types of asset, worldwide locations, varied capital outlay and fixed income.

Hands off investment

One of the major benefits of fractional ownership is the ability to take a hands-off approach letting a management company look after the day-to-day administration. Utilising the strengths and skills of each individual party involved in the property investment/management process also leads to greater efficiency. In simple terms this allows more time for investors to research their property targets and to maximise their returns.

Fixed returns

Many fractional ownership investments offer fixed returns in the region of 8% to 15% which is especially attractive in the current low interest rate environment. Fixed returns allow investors to plan ahead with regards to cash flow and also potential reinvestment in other properties. For many people it is the fixed returns which are one of the more prominent attractions especially in later years.

Projects are carefully researched

Property management companies offering fractional ownership have an in-depth knowledge of the industry and very close relationships with high quality trustworthy developers. The ability to pick and choose developers with a proven track record offers further peace of mind to investors looking to expand their property exposure. The fact is that each development needs to be as secure as possible to maintain the reputation of the property advisers – in this industry reputation is everything.

Complimentary usage options

While the investment attractions of fractional ownership should be upper most in your mind, many come with complimentary usage options allowing you to live that millionaire lifestyle for a relatively small outlay. A number of investors have been able to pick and choose various fractional ownership in 5* hotel assets which offer them various holiday destinations throughout the year.

Is fractional ownership for you?

As we touched on above, fractional property ownership has become more popular as the cost of property continues to rise. It is the ability to create a diverse portfolio using a relatively small amount of money which appeals to many investors. While the usage options should be seen as a bonus, they are enjoyed by investors, offering a means of leaving the millionaire lifestyle at a knockdown price.

Whether you look at fractional property ownership as a means of building your own property exposure or perhaps complementing your existing investments there are numerous options available. Please check out the Redbrick Wealth video which explains fractional ownership in more detail:-

Posted in Getting started in property investment, Property investment strategies, Property market trends | Comments Off on UK property investments are far more affordable for investors with Fractional Ownership

Celebrities are trusting in property to build wealth


Celebrities are trusting in property to build future wealth, alongside their already successful careers.

Recent years have seen celebrities of all ages across a variety of industries (including film, sport, business, and retail) trusting their savings in the property market, investing for the longer term, securing impressive investment returns and seeing their property portfolios as their pensions of the future. With hugely successful careers behind them within their own field (already providing a wealthy lifestyle) this demonstrates that the UK property market is as strong and rewarding as ever, remaining the most obvious and trusted choice to build future wealth.

The old adage of “investing in bricks and mortar” has certainly helped the likes of Sir Alan Sugar, Sarah Willingham, Robbie Fowler and Rupert Grint in their quest for long term financial security.

Sir Alan Sugar

While Sir Alan Sugar is perhaps best known for bringing the computer industry to the masses in the shape of Amstrad (a play on his name Alan Michael Sugar and Trading) he now invests the majority of his funds into property. The billionaire businessman may have secured his early fortune via Amstrad but he now owns a commercial property portfolio centred around London and the financial district. He recently made a £50 million profit on a 40,000 ft.² redevelopment near St Pauls having secured an £80 million sale price.

In a recent Telegraph article Apprentice winner Mark Wright told how Lord Sugar advised him that you “make money from property and do business for fun”. This is a far cry from the heyday of his Amstrad computer business and it’s very humble beginnings.

Sarah Willingham

Sarah Willingham is one of the popular new additions to Dragon’s Den where she uses her entrepreneurial experience to find new investments and help those starting in business. While she made her millions in the restaurant industry, Sarah Willingham is one of a growing breed of celebrity now looking to invest in property for her future. Along with her business partner and husband, she readily admits to having a small pension to fall back on while growing her property portfolio and business investments.

It seems that the relative long term security and rental yields on buy to let investments are being used more and more as a backbone for long-term financial planning. Property investment has in effect become the pension fund of the future for many.

Robbie Fowler

While still a legend at Liverpool football club, Robbie Fowler invested in his first property at the tender age of 18 after receiving advice from then Liverpool manager Graeme Souness. He is now one of the most famous sporting property investors having not only built up a multi-million pound property portfolio over the years but created a very successful property advisory service called the “Property Academy”.

Rupert Grint

While other actors from the famous Harry Potter saga still chase the headlines, and the accolades, actor Rupert Grint chose a different career path in property investment. At the relatively young age of 24 he has a multi-million pound property empire worth in excess of £10 million based predominantly in a 20 mile radius around his Hertfordshire home. He has funnelled his significant film royalties from his role as Ron Weasley in Harry Potter into his property empire which continues to grow.

Securing various buy to let investments across London’s commuter belt offers potential for significant capital appreciation and rental income growth in the longer term. Focusing upon the London commuter belt has required a significant outlay from Rupert Grint. It has been reported that he recently acquired three properties around his home village for a combined figure in excess of £9 million.

So to follow in the footsteps of savvy celebrities and secure your future financial security, it appears that property is definitively the way forward, with your daytime career sitting firmly on the sidelines.

Posted in Property market trends | Comments Off on Celebrities are trusting in property to build wealth

“Hands on” verses “hands off” property investment


“Hands on” verses “hands off” investment

Do you have funds to invest in property but perhaps not the time to manage them on a “hands-on” basis? Are you looking at actively investing across the property market but are not quite sure where to start? The terms “hands off” and “hands on” investment are at the opposite ends of the spectrum although there are benefits and disadvantages with each of them.

Hands-on investment

While ultimately it will come down to your experience of the investment markets there are many people who prefer the hands-on investment strategy in order to maintain a higher degree of control. Some of the obvious and not so obvious benefits to take into account include:-

• Potential higher rate of capital gain due to reduced management charges
• Enhanced rental income (e.g. saving on letting agent’s fees by self managing)
• The hands-on approach often avoids any confusion or 3rd parties
• Reduced administration charges by managing the property investment yourself
• Financial leverage – the ability to mortgage your property requiring less of your own money to purchase (many hands off investments are cash only investments).
• Control – you have full control of the asset allowing you to react faster to market changes.

This is just a selection of the benefits associated with hands-on investment although there may potentially be many more depending upon the specific assets involved.

There are also potential disadvantages to being a more hands-on investor such as:-

• Time taken up by tenant, maintenance and general asset management issues
• Stress can be an issue when you have a number of properties
• The need to be on hand 24/7
• Potential legal issues to address
• Unforeseen costs
• Staying on top of current regulations and market conditions

In simple terms you need to weigh up whether your hands-on involvement in a property/development is creating an acceptable uplift in income and potential long-term capital growth prospects. If you are unable to add much in the way of additional value then you may well need to consider a hands off approach.

Hands off investment

There are many people who have funds available for investment but unfortunately they are not able to find the time to take an active role in managing their investments. This is where hands off investment opportunities come to the fore and, as with a hands on approach, there are upsides and downsides. The benefits of this investment strategy include:-

• There are often low entry level products available (i.e. less cash needed to start investing) so good for first time investors to get a foot into property investing.
• Also great for people wanting to retire and let their money work for them by taking a more hands off approach.
• No need for a mortgage (no credit checks e.t.c.)
• Reduced stress as no involvement in day-to-day management and administration
• Fixed returns available enabling investors to plan ahead
• Often an assured resale which gives a known positive capital gain
• Potential use of assets such as hotel rooms to enjoy your lifestyle whilst getting a great return
• Ability to spread investment risk across different products using relatively modest funds

As we touched on above, it does basically come down to the individual’s ability and choice as to whether than want to be a hands off or hands on investor. The property investment sector has grown significantly in recent years offering more people the opportunity to switch some of their savings into long-term property investments, on a hands off basis.

Where there are benefits there are also potential disadvantages such as:-

• Reduced potential capitals gain as these are often fixed and sometimes the market out performs them. These investments are more suited to those wanting immediate assured cash flow income rather than long term capital gains.
• The need for in-depth due diligence about the developer/management company
• Placing your trust and assets in the hands of a third party
• Limited input regarding property development & management

The simple fact is that when considering a hands on or a hands off approach to property investment you need to consider your experience, your expertise and whether indeed you are able to add value yourself. This should be balanced against the benefits that an experienced third-party can bring to the table especially if you are after a “hassle free” life.

Posted in Getting started in property investment, Property investment strategies, Property market trends | Comments Off on “Hands on” verses “hands off” property investment

The 5 best investments of 2015

The 5 best investments of 2015

Fruitful property development can be highly dependent on not only identifying the right opportunities, but also identifying them at appropriate times. Naturally, we at Redbrick Wealth don’t want you to stumble when you try to invest in property, so here is a list of what we consider probably the five most convenient opportunities for investments in 2015.

Which countries are economically moving in the right direction?

Though Europe has been something of a problem part of the global economy for quite a few years now, the situation is slowly improving and so fresh, exciting opportunities for investment property could soon emerge there. Other parts of the world that are noticeably going places financially include India, where the recent election of the government of Narendra Modi has encouraged more corporate confidence.

Pay attention to the stable ‘safe haven’ markets

The trend of money flowing from parts of the world in economic or political crisis to more stable markets has continued even despite the world economy having moved towards overcoming several big stumbles. So, it could be a good idea to look at a variety of locations within major world cities, like London, New York and Vancouver, that are still considered ‘safe havens’.

However, keep an eye out for promising emerging markets

Sure, you are likely to continue spying investment opportunities in traditionally financially significant areas of cities such as London, New York, Paris and Tokyo. However, as revealed by last year’s The Wealth Report, emerging markets are going to be responsible for much of the world’s growth in wealth in 2015. We reckon that these markets are likely to include, among others the historic Tiong Bahru neighbourhood in Singapore and Cape Town’s CBD – so keep an eye on these places.

There are good value opportunities in some overlooked markets

Certain property markets, like those of Dublin, Rome and Madrid, have long shrunk in values and demand due to first the global credit crunch and then the Eurozone crisis. However, the low prices in these markets could make them ideal to enter now, in preparation for when they recover.

Whatever opportunities you look at, remember to consider the infrastructure

The advanced infrastructure of major cities helps to make them consistently reliable places to invest in property. However, paying lots of attention to these cities could lead you to overlook more obscure locations that have embraced infrastructural development and so could also be promising for you.

Posted in Getting started in property investment, Property investment strategies | Comments Off on The 5 best investments of 2015