Saturday, September 25, 2010

Some Varieties of Property Investment


Contrary to popular belief, property investment is of various types. Variation exists as the level of personal involvement of the investor and objective for the investment widely differ from one person to another. But whatever be the purpose of investment and the degree of investor's involvement, siphoning off money for real estate property always brings overwhelming return. Some varieties of property investment are enlisted below.

Freehold Ownership: Most probably, it is the most common form of property investment. An individual enjoys the ownership title in his name and have the maximum control over his property. Not only an individual but also an office can be the owner of a property. The owners enjoy the right to pledge their properties to raise up funds.

Leasehold: With this option of property investment, an individual does not get ownership. The person in question can live in the property for the lease period in lieu of lessee. Throughout the time of lease, the person enjoys the same facilities like a freehold owner. In case the tenant fails to pay the rent to the landlord, he is legally empowered to possess the tenant's belongings within the rented premise.

Syndication: Arranging capital is often a constraint for the real estate property investors. To sort out this problem, a group of individuals take initiatives to raise fund. Syndicate benefits the small investors to pull a pool of finance that may not have been possible in absence of grouping.

Sectional Title: Several individuals may own different sections of a property. Each owner has an absolute right over his own section but he also enjoys the shared ownership by having a free access