How Can You Earn an Above-Average Return on Your Property Investment?
Trying to grow your investment for your retirement is not as easy to do as we would like.
Investing in property is often a sound idea for the younger generations who have time to grow their capital, but many older folk heading towards retirement prefer to look for something that can be a passive income and not need the hands-on involvement that a number of other property investments do.
The beauty of lending your money as a Private Lender is that you can often lend smaller amounts into several ventures and therefore reduce your risk.
As a Private Lender you have several options of lending and there are often choices to the length of time of the investment, the amount of interest you will be paid and the period of payment of the interest on your investment.
If you consider becoming involved in a Joint Venture in Property Development it is quite possible for you to have a return on your investment of between 20% and 100%.
There are two ways to receive your return on investment.
It is possible to put up two parcels of money with some in each type of investment so that you have the chance of the higher return if the property is exceedingly profitable.
One of the benefits of Joint Venture investing is that you can share your funds around and therefore minimize your risk factor.
Another advantage is that by breaking your funds up into smaller parcels you can have various end dates that will allow funds to come back to you at different periods of time.
Investing on percentage return has given some investors brilliant returns over time but of course there is more risk involved.
Either way, whether you are doing percentage return or set percentage rate, both should return more than if your money was sitting in a bank account or in managed funds.
Investing in property is often a sound idea for the younger generations who have time to grow their capital, but many older folk heading towards retirement prefer to look for something that can be a passive income and not need the hands-on involvement that a number of other property investments do.
The beauty of lending your money as a Private Lender is that you can often lend smaller amounts into several ventures and therefore reduce your risk.
As a Private Lender you have several options of lending and there are often choices to the length of time of the investment, the amount of interest you will be paid and the period of payment of the interest on your investment.
If you consider becoming involved in a Joint Venture in Property Development it is quite possible for you to have a return on your investment of between 20% and 100%.
There are two ways to receive your return on investment.
- You can either accept a return on profit which means that if the development makes a substantial profit you will receive your share, but if the return on the project is lower than expected an investor receives less return.
This is a more complicated method and more details need to be disclosed to the investor.
When investing on a percentage return basis feasibility studies need to be studied before investing and during the investment period. - You can have a fixed return on investment.
This is a simpler structure and at the outset the time period for the investment of funds will be set.
It is possible to put up two parcels of money with some in each type of investment so that you have the chance of the higher return if the property is exceedingly profitable.
One of the benefits of Joint Venture investing is that you can share your funds around and therefore minimize your risk factor.
Another advantage is that by breaking your funds up into smaller parcels you can have various end dates that will allow funds to come back to you at different periods of time.
Investing on percentage return has given some investors brilliant returns over time but of course there is more risk involved.
Either way, whether you are doing percentage return or set percentage rate, both should return more than if your money was sitting in a bank account or in managed funds.