One of the most important things when devising a property investment strategy is how to make a consistent income stream from property investment. Any good property investment guide or those giving advice on property investment will always talk about property investment the long term game, for some investors that is fine, but for others a regular income is an essential part of their ability to invest.
Thankfully property investment is one of the easiest fields to earn a consistent (or fairly consistent) income, or should I say one of the fields in which regular income is most common. For those looking at earning a regular income, the most common strategy for investing in property buy to let. In America, those seeking property investment advice on how to earn a consistent and reliable income from their investment would most likely be directed to look into Section 8 housing.
Section 8 of the United States Housing Act of 1937 is the US housing assistance program, which authorises the payment of rental housing assistance to private landlords on behalf of approximately 3.1 million low-income households. Landlords who accept section 8 tenants have no worries over the tenants' ability to pay the rent from one month to the next, because the payments come from the government. This makes it a reliable and consistent income investment property strategy.
Perhaps the best thing about section 8 housing investment is that it is easy to research and find opportunities. The length and breadth of America features low income areas packed with families, living in or looking for section 8 housing. We simply pick one of those areas and then ensure the property we are buying is in good shape
Commercial leasing is another way of earning a consistent income from property investment. Commercial leasing is basically the same as buy to let. Commercial leasing is highly sought after by businesses and very popular with investors, investors get a consistent and fairly reliable income in the form of monthly rental payments, while businesses get the security of a fairly long term tenancy in a legally binding contract - a short term commercial lease is up to 10 years.
Unlike Section 8 housing investment, commercial leasing requires a lot of research. Assessing target markets, ensuring supply is not greater than demand, drawing up the right contract to draw tenants in your target market. Businesses are advised to ensure they get the right lease for their business, and commercial landlords must try to give them this, while still making sure they get what they need from their investment.
*This page is provided for information purposes only and should not be construed as offering advice. IPIN is not licensed to give financial advice and all information provided by IPIN regarding real estate should never be treated as specific advice or regulations. This is standard practice with property investment companies as the purchase of property as an investment is not regulated by the UK or other Financial Services Authorities.