iNVEZZ on Residential Property Investment: The Whys and Wherefores

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Investors’ portal iNVEZZ has recently published an analysis taking a look at the ins and outs of residential property investment from the perspective of the private investor. By analysing the strengths and weaknesses of this venture, as well as classifying the different types of residential real estate investment, the author of the editorial, Frank Quin, gives an initial direction to anyone interested in entering the residential property market.

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When looking to buy residential property to let, possibly the worst thing the investor can do is imagine him or herself living there. Because that’s when much-needed objectivity flies out the window.

Frank Quin of investors’ portal iNVEZZ has recently released an analysis covering investment in residential real estate. The author starts his editorial by outlining four important points crucial to his comprehensive analysis. First, Quin remarks that he looks at the residential property investment topic from the perspective of the private investor, or as he explains -- “someone looking to become the owner of a home, or homes, for reward”. Second, the author of the analysis underlines that prospective investors in residential real estate need to be clear in their objective in terms to the type of return they expect, i.e. whether their investment in property is intended to generate monthly income in the form of rent, or a capital gain from the resale of the asset, or both.

The third point in Quin’s introduction to the residential property investment topic is that “in the purchase of residential – indeed any – real estate, what investors gain in the security of owning ‘bricks and mortar’, they trade in liquidity.” And finally, the author of the editorial makes an important remark which should be considered by potential investors – a direct investment in property is hands-on, meaning that there is a significant maintenance cost accompanying the initial financial outlay. Quin writes: “Real estate is not like shares or bonds or gold certificates which can, in effect, sit in a drawer. It has to be looked after.”

After clearing up these basic matters, the author of the iNVEZZ editorial narrows the readers’ attention to some further points of consideration in regards to residential property investment through a “tried-and-true analytical tool”. In a comprehensive SWOT analysis, Quin dissects the strengths, weaknesses, opportunities and threats of investment in residential property.
Moving on, Quin gives readers some practical advice in terms of investment in property to let. “When looking to buy residential property to let, possibly the worst thing the investor can do is imagine him or herself living there. Because that’s when much-needed objectivity flies out the window,” he remarks. Instead, Quin recommends deciding on the type of tenant that the investor wants to target. Apart from this and other practical advice, the recently-released iNVEZZ analysis also provides information on mortgage lending as a potential starting point for investors who want to enter the real estate market, but have not raised the necessary funds yet.

At the end of Quin’s newly-released editorial, he also throws some light on another popular property investment option – the purchase of a shareholding in a real estate investment trust (REIT). After analysing this type of venture, however, Quin concludes the following: “REITs and their newly-emerging close relatives – property approved investment funds, or PAIFs, which are also exchange-tradable – aren’t therefore real estate investments, they’re equity stakes with exposure to the real estate market.”

To learn more about iNVEZZ, join, contribute your own professional or amateur expertise on the investment areas of your interest or engage with other investors or experts, please visit http://www.iNVEZZ.com.

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