Once you have decided to invest in property, there are a number of different routes you can take:

• Buy residential property with the intention of letting it out – “Buy-to-Let”. This could be a house or a flat, in good condition or bad, with or without an existing tenant, with or without a mortgage. If improvement is required, you could get the work done then sell for a profit or keep as a continuing investment.
  
  Buying an existing property through an estate agent, where the property is fit for immediate occupation by your tenants, is the easiest way to invest directly in property. It will not be the most profitable, but provided the rent you receive is more than the sum of your mortgage payments and other outgoings, it is a perfectly acceptable way to profit from property in the long term.
  
  
• Buy residential property “off plan”, which means you are committing to buy the property before it has been built - in other words, on the basis of the architect’s plans and drawings. You normally receive a discount off the open market value, of anything between 5% and 20%, but as always there are pitfalls for the unwary.
  
  The principle is that by buying at a discounted price, you already have some extra equity in the property by the time it is ready for occupation. Not all Investment Clubs are equal, however! It is essential you do your own research to establish the true market value and a realistic rental level for any property you are committing to.
  
  Viceroy Invest has achieved its strong reputation by always delivering sound, well researched, honest deals. Members bought £50 million of property through them in 2004. And 2005 was even more successful!
  
  
• Buy a holiday cottage to let for short periods. There a number of potential tax advantages in this form of investment, and you can always use it yourself for a few weeks each year if you like the area. Like most things to do with taxes, however, it is essential you seek professional advice before making any commitment.
  
  
• Invest in a property development syndicate or consortium, where you receive shares in the company in exchange for your investment. Whilst this can be a relatively easy way to get exposure to the property market, particularly if you have neither time nor expertise to do it yourself, it is not without risk. The expertise of the syndicate leader is critical and the shares may be impossible to sell in the early days, if ever.
  
  
• Invest in a reversionary interest in residential property. Although this can be a very profitable exercise in the long term, it is not suitable for the average investor because there is no income to cover interest on any borrowings. It is really only appropriate for people who have a lump sum to invest and do not wish to borrow to provide leverage.
  
  
• Buy shares in a quoted property company; either a house builder like Persimmon or Wimpey, or a commercial property company.
  
  
• Buy commercial property yourself (such as factories, offices, warehouses or shops). Whilst this is certainly possible, there are a number of potential difficulties for the individual investor, not least of which is the likely high purchase price.
  
  Commercial property tends to be valued in terms of the rental yield, and this may not directly relate to the bricks and mortar value. Any increased value is normally the result of doing something to increase the yield (for instance, increasing the rent or installing a tenant with a better covenant), rather than the simpler market forces in the residential field.