Investment
Investment in property is the act of spending money on a property asset in the hope that it will appreciate in value, thus earning a profit for the investor. Such investment can take many forms. It is extremely common for homes to appreciate in value while lived in by the owner, and there is no doubt that this possible rise in value may have played a part in the decision of the owner to purchase that property in the first place. Therefore the simple act of buying a home for the purpose of living in it could be regarded as a form of property investment.
Property investment also takes much more sophisticated forms, however. For example, the phenomenon of ?buy-to-let? has become increasingly common. It involves a person purchasing a property much as they would if they were buying a home to live in for themselves but instead renting it out for others to live in. The rental fees charged are often enough to defray the cost of the mortgage used to purchase the property, allowing the mortgagee to acquire ownership of the property at a minimal cost.
Although individuals frequently dabble in property investment, there are also firms which specialise in this area of business exclusively. They may bring expertise in renovation, allowing them to purchase dilapidated properties cheaply and sell them on the open market for a higher price after doing some refurbishing.
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