Investment property in UK

The UK is an ideal place to invest in property. There are many such properties available for sale, and the costs of some of these can be quite low. These properties are located in a wide variety of areas and may be found on a housing estate, looking over a park or in city centre locations within London or other major towns and cities across the country.

There are many reasons why investing in property is better than putting your money into shares. One such reason is that it’s much safer than what happens on the stock market, where prices can go up or down very quickly without warning. Because of this it’s possible to buy a property for £100,000 and then sell it for £200,000 without much effort within a very short time frame.

It’s also tax efficient. With shares you pay tax on any increase in their value that you make from selling them. With property you only pay tax on the price of the house when you buy it, and then when you sell it for a profit. Because of this, if you make more money out of property than shares over the years, then your capital will be bigger and can go towards buying more properties that will produce even more money in the future to keep growing your portfolio.

Investing in property also gives you control. You can choose where you want to live and what style of house that you want. You will have a say on what kind of property you buy, as well as when and if it will be repossessed, which means that the risks associated with property investing are not the same as those involved with investing in shares.

Investing in land is another option which can be used to invest in property, but this is more expensive and less popular than doing so with a house. In return for buying this land, you will get a freehold which is the right to own the land and all that’s upon it. There are basically two main types of freehold that you can buy: fee simple and leasehold.

Fee Simple Freehold

When you buy a fee simple freehold, this means that you are buying the land for as long as you want to own it. You have complete control over what’s done to the land, who can use it and for what purposes. You can sell the property or rent it out, add extensions or even build entirely new properties on there if so desired.

There are no restrictions to what kind of property you can build or add on to, as long as it doesn’t exceed certain planning regulations, so you could have as many detached houses, apartments or even a hotel if you wanted. This gives you an awful lot of freedom when it comes to using the land and how it’s developed.

The good news is that fee simple freeholds aren’t actually all that expensive to purchase and often sell for less than the price of buying a house, especially in the beginning. This is because there are many different requirements involved with buying land, and these tend to cost more than those required for a residential house purchase.

This means that you will be able to purchase a fee simple freehold for less than you would spend on a house and maintain the same quality of property. Your money will also be protected, as there are very few scams involved with land purchases so it’s unlikely that anything bad could happen to it, and if it does go wrong you will have the right to take your money back.

Leasehold Freehold

When you buy a leasehold freehold, this means that you have limited rights over the land. You can’t build on it or sell it, and you won’t be able to rent out the property. However, this isn’t a disadvantage because the benefits you will get from buying a leasehold freehold are actually quite a lot.

In return for paying a small amount more than the fee simple version of this property investment, you get significantly bigger areas of land that can be developed. You will also gain some control over what’s done with it, as well as additional options that are not available with the fee simple version.

For example, you will have the right to extend the property yourself on this freehold, rather than having to go through planning permission for it to be done. You can also decide who you want to rent it out to and how much they will be charged for doing so.

Leaseholds are popular because of this property investment option’s affordability and flexibility. This makes them an ideal choice for those that don’t have a lot of money and would like to buy a property that they can use, but which is more affordable than buying it outright.

Family homes are popular on this property investment option and make a great choice for anyone looking to add property to their portfolio, either as an investment or as a place to live. They can be found in all areas, including those that are popular with tourists, the country, the seaside and the countryside.

There aren’t any regulations on what you can use your freehold for when you buy it either. You can use it as a home or even rent out multiple rooms if you want to do so. The only limits here are those that you set yourself and there’s no saying that they have to be ones accepted by other people too (although they often will be).

The main disadvantage of buying a freehold is the price you pay for it. Because of the extra work involved in constructing them, they cost significantly more than buying a house. This means that if you do want to buy one, you will have to be prepared for it to take longer for you to get all the money back that you invested on it.

Also, there are problems with leaseholds that aren’t present with fee simple freeholds which give them slightly more risk related issues, although these are not enough to put most people off investing in this option.

Conclusion

If you want to invest in property, then buying a freehold is the method for you. By doing this, you will have all the benefits of owning real estate without any of the costs that come from using it. This makes freehold options perfect where flexibility and cost are important, as well as being popular with first-time investors who don’t have a lot of money to invest.

These are all the options for investing in property that you need to know about, which is why we’ve written this article. There are many other property investment options available too, and each one of them has its own advantages and disadvantages so there’s no one property investment option that's best for everyone.