By David Field


So, you've gotten sick of savings accounts, Isas, and even your average run-of-the-mill stocks and shares. You've seen the Apprentice, and you want to be rich rich rich like Alan Sugar. So what's the secret? Well, although Sir Alan made his name with the Amstrad computer and a bungling chairman of Tottenham Hotspur, it's an open secret that the vast majority of his not insubstantial fortune has come from investing in property.

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So why is property such a good investment? Well, for one thing, property prices are on the up. In the last year, the average house in the UK has risen by nearly eight per cent, according to the Land Registry, and there seems to be no sign of them slowing down. This means that simply buying a house can work out as a good investment, providing better annual returns than most savings accounts. In some areas of the country where house prices have traditionally been low, the high demand for housing has seen prices rocket in recent years and London - the usual suspect in the property market - is still looking strong.

For those looking to get even more out of their property investment, buying to let might be a good option. The advantage of this is that you can get an additional income from the rent, on top of the rise in value of your property. Obviously, there is the added hassle here of being a responsible landlord, but if your willing to put up with that, then this could be a nice little earner for you.

For those who don't want quite so much involvement in their investments, there's the alternative of getting a property investment company to do the work for you. The basic idea is the same as that of other types of investment fund. Essentially, you just invest some money into a fund, which is then invested for you in a variety of properties and property development projects. This is probably a lower-risk strategy than buying property yourself directly, as well as being more affordable for those who want to get into the property market without actually stumping up for another house themselves.

But beware, however, if you think that property investment sounds like it's too good to be true. Like any high-returns investment, there are significant risks to take in to account. First off, there is the simple fact that, although the property market is looking pretty good at the moment, the winning streak can't go on forever. The price of housing can easily go down as well as up and in fact many market observers are talking about a crash in the near future. They could be wrong of course, but the term "safe as houses" really doesn't have any value in the world of investments.

The trick is really to do your homework. If you're going to buy yourself, then make sure you know what your costs are going to be, and what the chances are of you being able to make a profit in the future. If you're going to opt for a property investment fund, make sure you spread the risk with some low-risk investments too.