Property can be a good investment. Compared with other types of investing such as stocks, cryptocurrency, commodities and more- the risks in property can seem relatively low, and for many property seems more tangible as an investment – you can see it!
While there are peaks and troughs in the market, overall property accumulates in value most years and there’s generally a high demand for it. So whether you’re looking to make money by selling or renting, it can be attrative. However there are some things to bear in mind to make sure you’re choosing well and making the most of your money.
Find The Right Property
You need to find the right property to maximise your profits, this all comes down to your budget, whether you want to rent or sell and the area you live in. For example, if you live near a university then buying a large house, splitting it into rooms and renting to students can be a good way to earn money. If you live near a suburb then renovating a large family home and selling for a profit could be the way to go. If you want to make money without getting your hands dirty, you could even invest using a company like Fundrise- you could check out Fundrise review listings online to see if it’s for you. Something like this allows you to access a diversified portfolio of private real estate assets from as little as five hundred dollars. Unlike investing in the stock market, the risks are low.
Flipping Houses
Once you’ve chosen the right property, next you need to decide what to do with it. If you’re going to go down the selling route then a good option is to ‘flip houses.’ Here you buy an old, run down property for cheap, and using a team of trusted tradespeople bring it back up to scratch. Not only do you make an old unloved and run down property into someone’s dream home which is very satisfying but there’s the chance to make massive profits. You need money upfront to be able to purchase the property as well as pay for the work, but within a few short months you could have it finished, sold with thousands in the bank.
Become a Landlord
If you don’t want to sell the properties you buy, how about renting them out instead? This means you can earn money over the long term, instead as of an instant sum of cash when a property is sold. If you don’t have the money to buy a house cash, what you can do is get a buy to let mortgage. That way your tenants rent essentially pays off the mortgage, and after it’s paid off you can either continue renting and earning profit or you could sell it. You could purchase a number of properties if you have the means to, and live off the rent that you gain from them each month. If you hire an estate agent to manage them, there’s not even any hassle to you.
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