First of all i think its important to establish whether you want a hands-off (letting others run the investment for you) or a hands-on (acting landlord) approach? As that will make a big difference to your final property investment choice.
While £40,000 is not an insignificant amount to begin your property investment career with you do need to set your targets and your goals very early. As @Jackie Smith suggests you also need to decide whether you will be hands-on or hands-off with regards to managing your property assets. Are looking for a long-term buy to let investment? Purchasing property in need of renovation and a quick profit? There are many options available to you.
You don't say where you live but the North East of England has some very cheap property, often in need of renovation. Once smartened up you can sell for a profit. I have seen terraced houses for as little as 25K needing maybe 5 - 10K spending on them.
Hi @Veronica I have experience with the north-east of England and there are some cheap properties available. While they may not create a significant capital gain in the short term there are many opportunities for near double-digit rental yields. Some areas of the north-east property market will be seen as a slow burn but there is long-term potential to build a good quality portfolio.
Even though £40,000 could be a significant deposit on a property if you are utilising debt opportunities, it is better to take it slowly in the early days. There are many opportunities in areas such as the north-east of England where you could purchase a property for a relatively small outlay with the intention of creating a long-term income stream and capital growth. Once you have more experience and confidence then you can use funds available more for a deposit on future investments and utilise various debt opportunities.
Hi Sarah! Thank you so much for your great question.
There looks to have been some really great comments but they're all leaning towards the landlord route. The deals Belinda does, often without investing a single penny of her own money, can generate an income without having the hassle of being a Landlord. Belinda now only deal with investors. To put this into context, the latest deal Belinda is working on is converting an old, unused, unloved office space in to 70 luxury apartments. The same week she went to look at the property, she met with 3 investors who wanted to purchase it from her as she did thorough due diligence!
So for me, I would invest in an education.
Belinda and her team are often asked, "if you had the choice of £1mil or property knowledge and mindset what would you choose?" And the answer is so simple!! We would all chose the knowledge and mindset every time! That way we could do property deals that generate an income time after time.
There are so many different methods in which you could become a property professional and entrepreneur... far too many for me to list on here, but if you would like to know more please head over to www.Belindagrashion.com