7 Options To Buy Investment Property

As well as the whole world to choose from for location, there are a number of different ways to directly invest in property. What is a little daunting is the number of variables this creates – 175 by my reckoning! (7 ways to invest multiplied by at least 25 countries). So, once you have decided what to invest in, you can then get on to deciding where to invest (which has been covered elsewhere in HPA).

There are really three key factors to consider when deciding how and where to invest – risk, reward and effort involved. How you invest is important because it affects all three key factors; where you invest only really affects risk and reward. The Montenegro real estate reality is that many people only concentrate on the (potential) reward, and often become blind to the risk involved. Even more frequently though, people do not factor in the effort required for certain types of investment. This can then lead to frustration, despondency or panic, and at worst, a desire to stop investing completely.

I have ranked each of the 7 in terms of the level of effort required (The Hassle Index!). Coming in with the lowest ranking is Guaranteed Return Investments. These are simply a cash investment in to a project or scheme, you receive a monthly, quarterly or annual fixed return on your investment. As an example, a scheme investing in UK buy to lets has been delivering a 32% return for over 3 years now, paid monthly. Another in Turkey is delivering a 25% annual return. The risk element is high with these types of investments, especially when your cash does not secure you title on an actual property (as with the UK scheme). But the effort involved is simply to sign a contract and hand over your cash, after copious amounts of due diligence though! I know of an innovative company that is going to ‘re-package’ these schemes and offer a lower return but with an insurance scheme bolted on, protecting your cash and reducing the risk element.