If you’ve decided that you’d like to invest £100k in property it’s likely that you’ve already ruled out placing the money in other types of investments such as stocks and shares but if you’re still considering which investment type is best we’ve written a useful article comparing the two.

Buy to let property investment is relatively low risk when compared to other investment types, which is why it makes sense for those seeking the best way to safely invest their money.

Here we uncover the best way to invest 100k in property:

Start a property portfolio

Whilst you could simply invest in one property with your 100k, the best way to invest this money in property, to make the best possible returns, is the build a property portfolio.

An investor can purchase multiple properties by splitting the cash and borrowing money in the form of buy-to-let mortgages.

Even when mortgage costs and interest are factored, landlords can still generate far greater returns by spreading their cash over two or more properties and borrowing the difference in the form of buy-to-let mortgages rather than buying a property outright with cash.

With two properties you’re growing double the capital over time. Yes, there are double the costs but there is also double the rental income to balance the books and make a steady profit.

Within 5 years of buying your first few properties with your initial cash injection, if you have bought properties in good investment areas you should comfortably be able to pull out some of your capital to buy further investment properties using buy-to-let mortgages, building your portfolio and increasing your ability for capital gain across several properties.

Diversifying your portfolio is the smart thing to do. Your first investments might have done very well but 5 years down the line prices are likely to have risen and the opportunity that was present when you purchased in that particular spot will likely no longer be the same.

It’s wise to consider locations and properties in the current market climate when you’re looking to buy as the dynamics are forever changing. It can also be appropriate to sell an asset that has peaked in order to purchase in other locations that have yet to realise their potential. We’re always happy to advise on such matters and work closely with our investors to ensure their property portfolios are working as well as possible.