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4 Alternative Ways to Invest in UK Property

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There’s no denying that property can be a great long term investment. Investors have made a fortune investing in UK property in the past, and many will make a fortune in the future too. For most, though, the problem with direct property investment is that it can come with a lot of hurdles.

Firstly, UK tax laws brought in recently have made the tax system less favourable towards landlords. On top of this, you have the prospect of actually being a landlord and all of the hassle that comes along with it, not to mention the deposits that are being asked on buy to let mortgages* these days.

With the above in mind, we thought we’d suggest 4 alternative ways that you can invest in UK property, while avoiding a lot of the potential hassle and problems that generally come along with this type of investment.   

Buy a Share in a Property

Nowadays, it is very easy to invest in property online without having to deal with all of the aspects that usually make owning a second property a nightmare for most investors. Websites like Property Partner*, for example, allow you to buy shares in a property along with other investors, having your share of the income from the investment paid out directly to you in the form of a monthly dividend. Not only this, but you can also realise any capital growth in the value of the property, as all of the company’s properties are valued quarterly by chartered surveyors and any increase in value is likely to be reflected in the price of the shares that you own. You can also exit from your investments quickly and simply by selling your shares in a property via the resale section of the Property Partner website*.

Lend to Other Property Investors

A second alternative way to invest in UK property is lend to other property experts who need short-term funds to move forward with new projects. Peer to peer lending has grown in popularity in the UK and companies like easyMoney* – from the same people who run easyJet and easyHotel – allow you to lend money to property experts and gain a good rate of return for doing so. When you invest with easyMoney* you can also enjoy the tax benefits that come along with ISA investments, as their offering comes in the form of an IFISA, so any income or capital gains will be subject to UK tax relief.

Invest in Homebuilders

Another way to invest in UK property without actually buying a house would be to invest in UK homebuilders. As a general rule – I would suggest that you do your own research on specific companies – when the property market is performing well, homebuilder shares tend to follow suit. If you want to invest in UK property this way then it’s important to take a look at the prospects for the big UK homebuilders*, to help with your decision as to which one has the most potential for share price growth as well as income.

Invest Via a REIT

Investing in a REIT (Real Estate Investment Trust) is probably the most well-known of our ‘alternative ways to invest in UK property’ and that’s the reason why we’ve left it until last. That being said, it certainly doesn’t mean that you should ignore the option. Investing in property via a REIT holds potential benefits for many types of investor – especially income investors as you can see from this article* from online broker Hargreaves Lansdown*. There are many different types of REIT available to investors, each focussing on different segments of the market so you can choose which one you are most interested in.

No Deeds, No Hassle

Here we’ve mentioned just 4 alternative ways to invest in UK property. We hope you’ve found them useful and that one of them proves to be the right option for you. While the above options may not mean that you hold the title deeds to a property outright, for a lot of investors this can be a blessing in disguise, as it allows you to take advantage of the potential benefits of property investment, without having to deal with the hassle that often comes along with it.

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