What is an Investment Property and How Can You Make Money From It?

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Real estate investment is at an all time high as more and more people seek to use their savings and their profits from other investments to earn money from the buying of properties. There are multiple reasons as to why this is the fastest growing investment market, investors like to make tangible investments, the real estate market is notoriously durable and in truth there has always been more demand for properties than supply, giving investors a massive advantage when investing. Many people who own multiple properties have done so through keeping their first property when they move and renting it out, there are others however who look to purchase an investment property rather than renting out a home. So what is an investment property and how can money be made from it? Let’s take a look. 

Low Cost, High Demand 

The perfect property for investment is one which can be obtained at low cost and which is highly desirable and attractive to prospective tenants. Generally investors will look to find a region where the market can be considered a buyer’s market, what we mean by this is a market with low property prices owing to a large volume of them being for sale. If a property is found in a buyer’s market which also offers high demand on the rental side of things, this is a perfect property for an investor. 


Most people who are looking for an investment property are looking for one which is easy to maintain, and one which will not require heavy investment or large amounts of time and effort given to them. It is for this reason that Turnkey property investments are so popular, these properties are already ready for a tenant to move into and the investor simply needs to make the purchase and then either manage the property or pay a small fee for a 3rd party to manage the investment. Given that most people who look for an investment property are not experts in the real estate industry, these properties are the perfect solution for them. 

Making Money 

There are two main ways in which to make money from an investment property, the first of those is to buy a property at a low price, rent it out allowing cash flow to come in each month, and simply sit on the property long term. In doing this for the long term many will see their investment paid off through the rental earnings, and they will still have a valuable asset on their hands. Some prefer to invest in a property which requires some work, spend money on getting the property up to scratch and then look to sell it on to those who have opted to look towards a long term financial goal. The latter option allows cash to quickly be liquidated and a small profit made, before moving on to the next property. 

If you are sitting on cash or you are able to manage a mortgage, an investment property could be the perfect place to put your money to work. 

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