How To Invest In Property Without Being A Landlord
Last updated 31/07/2018
The once popular property investment of buy to let is quickly becoming a mine field with the introduction of stamp duty tax and the withdrawal of tax relief.
So, how can you invest in property without becoming a landlord?
The aim of ‘flipping’ houses is to buy a house at a good price, make renovations to it and increase it in value and then quickly sell it on for a profit.
As you will not have a tenant in the house and aim to sell it as quickly as possible you will still be investing in property without being a landlord.
Air ‘bnb’ Host
If you have a second house or a spare room you could rent it out one or two nights a week.
Despite the similarities to being a landlord the guest will stay for a shorter time and you can charge a higher amount which means it is another way of investing in property without being a landlord per se.
Another way to invest in property without being a landlord is to invest in raw land.
You can buy this with an aim of selling it on with little to no upkeep costs and you could divide it up to sell and make a profit too.
Make sure you do our homework and make sure the land you are investing in isn’t worthless.
Trading Leads / Property Sourcing
This is where you sell a property ‘lead’ to an interested investor. Depending on how much work has been done has been done, will affect the price.
Property sourcing is also a way of investing in property without being the landlord.
You may wish to go into investment with a partner, and they may be the lead landlord, or you may both choose to employ someone to oversee the property.
Your risk is shared and you have invested in property without being the landlord.
Peer to Peer Lending
Peer to peer lending is where 2 parties (the borrower and the lender) are brought together via an online platform.
Your loan is secured against properties in different parts of the country and the risk is spread and therefore you are investing in property without being the landlord.
This is a stocks and shares ISA where you can save up to £20,000 each tax year.
Your cash is pooled in with other investors and held in a fund which goes on to purchase buy to let homes.
This is where you would invest in commercial property via an opened ended investment company (OEIC) or ‘collective fund’ and your investment is put together with other investors.
You would have an allocated fund manager who normally takes a % and you would also have to pay tax.
This type of property investment is not advisable for 1st time investors and we would suggest seeking advice from a financial advisor but it is another way to invest in property without being a landlord.
You can source money for a property by asking a large number of people normally via an online platform in return for equity shares in the property.
You can invest small or large amounts in property without being a landlord.
JaeVee - Your Property Partner
Get in touch with us here at JaeVee to see how we can help you with your investment in property without being a landlord.
We provide 100% of the finding for your profitable property developments and are here to guide you each stage of the way.
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We would advise you to seek independent financial advice before investing. Capital at risk when investing in property.