Buy to Sell - or Buy to Let?

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Which is best?

Investing in property offers two apparently different opportunities:

  1. Buy to Sell - buy a place in need of renovation, spend some money refurbishing it and then sell it at a profit.
  2. Buy to Let - purchase a property, rent it out and as rental values increase you can begin to turn a profit.

Let's have a look at how this works:

1. Buy to Sell

Properties in poor condition fetch prices well below their market value. This is because most people are either unwilling or unable to arrange the refurbishment work.

  • Buy a property in poor condition below market value
  • Renovate and improve it
  • Sell it at a profit

Look to make a 20% return in this case. So, purchase a property for £80k, spend £20k on renovation, buying and selling costs, and sell it for £120k to give you a 20% return.

Typically you might own the property for only 6 months.

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