Investing in property can be a lucrative venture, but have you considered of purchasing tax lien property? This lesser-known strategy offers potential high returns with relatively low entry costs. When property owners fail to pay their taxes, the government issues tax liens against the property. These liens are then sold to investors, allowing the government to recoup the owed taxes.

Buying property tax liens means you pay the outstanding taxes and, in return, receive the lien. The property owner must then repay you the amount paid plus interest. If the owner fails to repay within a specified period, you might even have the opportunity to foreclose on the property, acquiring it at a fraction of its market value.

This investment strategy carries some risks, such as the property owner's bankruptcy or the property being unmarketable. Therefore, thorough research and due diligence are essential before purchasing tax liens. Familiarise yourself with local laws and regulations to understand the process fully.

Buying property tax liens could diversify your investment portfolio and provide substantial returns. By understanding the risks and rewards, you can decide whether this investment strategy aligns with your financial goals.