Investment property is quite simply put as; a property acquired with the intention of earning a return on the capital outlay either through renting or re-selling, or of course, both. This can take the form of a long-term endeavour or short-term investment, commonly known as ‘flipping’ where a property is bought, remodelled or refurbished and then re-sold. To maximise on the investment takes experience, not just of the obvious like location and works required but also skills such as understanding market dynamics and deciding on best use of capital to obtain the highest return given the possible permutations.
A simplification of what brick-sand-mortar specialises in can be defined by identifying a suitable investment property and deciding on the best rate of return by way of;
Acquiring and remodel and/or refurbish with a view to re-selling the property back to the market for a targeted rate of return by selling to private individual investors for long-term returns or the active residential market
Acquiring and remodel and/or refurbish and hold to rent – either as normal short-hold tenancy or turn into a serviced apartment, both for longer-terms gains.