Although it may be more difficult to make a profit from traditional property investments such as buy-to-let and renovation, canny investors can still provide for their future by putting money into less conventional investments, says the Property Investor's Handbook, a Which? Essential Guide
Some investors regard buying properties off-plan as a highly speculative form of investment, but it can work well, especially if a large discount is negotiated with the developer, which is more likely in this type of purchase.
However, the Property Investor's Handbook warns investors to do their homework first; building a sound knowledge of the local property market and ensuring the property's real worth matches developers' claims are crucial starting points.
There are large profits to be made from turning commercial properties into residential homes and buying land can be a tax efficient form of investment; though any viable investment requires considerable research before jumping in.
Investment funds, clubs and syndicates may be good for novice or time-short investors. However, a number of property investment clubs have been closed down by the OFT and Trading Standards for making misleading claims and promises, so proceed with caution.
'When the housing market is unstable property tends to fall out of favour as an investment. But many people don't realise that property investment opportunities come in many forms; from joining a property fund to snapping up pieces of land,' says Kate Faulkner, author of Property Investor's Handbook. 'Done properly, investing in property can still provide a good return, but people need to look beyond buy-to-let and renovation.'
Her advice is to do your homework. 'Make sure you know exactly what type of investment is right for you, how much you can really afford to invest and whether property will give you the return you're looking for,' she advised.