People often misunderstand the concept of property investment. In fact they believe it is simply a “buy and sell” type of investment. Contrary to belief, property investment is not such a simple investment type. It has different options. Simply put, there is more than one way to hold and invest property to gain a profit. Lack of this knowledge make many of us vulnerable to risks and losses. Understanding the business is the first step of being success. So if you are a novice to this field, first thing you have to do is understand these variations and then you can find out which type of property investment suits you the most. Among various types, following guide briefly explains the most common types of property investments available.
This is the most common and the most famous type of property investment by far. In freehold ownership, owner has the full authority over property and he or she holds direct title as well. Owner will be registered with the property and the best advantage of this type is that owner has full control over the said investment. This ownership can be held by both individuals and companies. If you are interested in this type, you should start researching more and Think Money is a good place to start your research.
This is the same thing as renting a certain property. In leasehold, the person who has to pay a monthly rental does not have the ownership. But during his or her time as a lessee, they get to enjoy and use the property as their own. Duration of their stay is pre-agreed and during this time they have to pay a monthly sum to the owner of that property. If you are interested in this type, it is guaranteed to offer you a solid monthly income but you have to follow the right steps when you are renting your property to a customer.
This type is a little different from previous ones. In sectional title, there is more than one owner to a certain property. There may be different owners for different sections. For an example, urban housing schemes often have a set of owners who claims certain sections of the schemes. Specialty is that each owner has full ownership over his or her section and also, they have shared ownership to the full schemes as well. This is also another good investment type and you can realize it if you read people’s feedback from reviews such as Think money Australia reviews or find further information at Think Money Wikipedia page. Other than these famous and most common types of property investments, there is Syndication, Property companies, Share block companies etc. and before you invest your all money, do your research and identify which investment suits you the most.