Property Profit Truths Most people want to get onto the property ladder at some point in their life, if anything to have a roof over their heads and something solid for their family’s future. Owning property also paints a picture for a supplementary income, an early retirement and, at best, complete financial freedom. Although many potential investors will have been put off by the wretched state of the market over the past 18 months, with the right approach and knowledge, it is possible to find safe passage through the property labyrinth and come out on top. There are two ways to profit in property (aside from simply inheriting it) - margin and yield. These methods are the tried and tested means for amassing wealth from bricks and mortar. However, there are many hidden risks involved when entering into this realm and caution is advised. Property by its value alone can easily land you in a pit of debt. Yet on the brighter side of the coin, it can also make you a lot of money. The trick is to go in with your eyes open, do your due diligence, and have the stamina and expectations to stay in the game for the long term. Margin is probably what most Britons are familiar with, having experienced another turn in the property cycle here – capital appreciation. Buying when the market is low and selling when the market is high is what keeps every avid investor awake with fear and anticipation. Yet how can we really be certain when one thing is high and the other low? And how do we know what the true market value of a property really is? Timing is crucial, so much so that we’d have to put together a separate article to outline it’s importance (watch this space). Yield (better know as rent) tends to be the road less travelled. This is a long-term method of profiting, and this elusive, passive income is often the reason why people aspire to accumulate property. Issues such as maintenance, management and tenancy voids are always going to be a pitfall and this will require some study and research as well as some hard-earned experience. So for those that can comfortably step onto the Monopoly board, it’s important to find an investment that will appreciate gracefully and deliver you a healthy yield over the long term. More on this next time. This article was written by Maya Krikke, property consultant at Pierre & Vacances property investments. [](