Buying a house is painful. It may also be rewarding, exciting, and all those wonderful things. But, the reality is that you’re going to hand over more money than you’ve likely ever seen. If you’re buying upfront, that means clearing your accounts. With a mortgage, it means letting years of debt into your life. It’s worth it, of course. Nothing feels as good as homeownership. But, it’s impossible not to feel that sting.
Sadly, we’re not here with a miracle cure. No matter what, you’ll need to hand over that money. And, it’s going to hurt. But, you’ll be glad to know that there are ways to lessen the pain. And, one of the best options open to you is buying a property with profit potential. That way, you can be sure you’ll earn back that money and more down the line.
It’s important to note, though, that the only way to make this work is to change your hunting priorities. When we buy homes, most of us look for that ‘family feel’, or ‘something we can see ourselves in forever’. These are admiral goals, but they are not going to make you any money back. Instead, you might want to look out for these sure signs that property could line your pockets down the line.
It needs work
Many of us avoid properties which are in a real state of disrepair. While they’re often on the market for less, they need a lot of money spent on them. What’s more, they aren’t an instant fix. If you’ve sold your house to afford your new one, you might need to fork out on rent elsewhere. That’s even more money on top of your budget.
In truth, though, if you get this right, a project property could be the perfect earner. Admittedly, you need to stay logical here. In an ideal world, you’ll buy something which is at least liveable as it stands. That way, you won’t lose more money on rentals. And, you need to bear in mind the price of the house with the required work in mind.
In most cases, though, a real project can see you making a load of profit back down the line. Though you won’t see that profit until you come to sell, it’ll be well worth the effort. House prices rise at the best of times, but improvements could see that price skyrocket.
There’s plenty of land
Another sign a property is a winner is the land attached. Often, large quantities of land mean nothing more to us than more work in the garden. But, it’s time to get your earning head on. Land means a significant potential for more money. What’s more, you can go about earning from this however you like. And, the profits will be instant. What’s not to love?
In some cases, you may just want to rent out your fields for corporate events or wedding parties. It might even be worth taking out a wedding license on the land for this purpose. Or, you may want to take things further, with something like a ranch. As you can see from these listings, there are some fantastic options in this category. And, properties like these could see you keeping animals, growing veg, or even producing wheat crops. You could either keep this small-scale or turn it into a complete business if you fancy. Your land will be your oyster, and the pearl won’t be long in coming.
There’s space for a home business
We live in an age where more people than ever are starting businesses at home. Thanks to the reach provided by the internet, few things are better for building wealth. There are low overheads because you won’t have to rent out space. And, you get the benefit of working from the comfort of your home. It’s ideal.
Of course, home businesses can’t thrive in any old household. If you have no choice but to work on the kitchen table, you might fail to succeed. You certainly won’t have the option of employing when you want to. By comparison, a property with plenty of space could change that home business game. This could be anything, from an outhouse you could convert, to the possibility of extension. Even a home with plenty of spare bedrooms would do the trick, though you’ll likely pay over the odds for this from the off. Instead, you’d be better looking for potential. As mentioned above, plenty of land can work here, too. Even if you don’t like the idea of farming, you could build offices in that field.
The area is up and coming
The area is vital during any house hunt. We all have locations in which we would ideally like to live. But, if you’re looking for profit, it’s worth considering which areas are likely to increase in value. In truth, this isn’t easy to judge. While income like this is the most passive option on the list, it’s a difficult thing to get right. But, if you manage it, there’s nothing more to your profit than sitting back and watching house prices rise.
Some sure signs that a cheap area is about to get big include:
- Major developments (shops, train stations, more housing)
- Improvements to local schools
- Increased awareness of the area
- A progressive council
And, of course, there’s good old gut feeling. In truth, none of these signifiers are done deals. But, you can be pretty sure that paying attention to each could leave you in a good position. It’s also worth paying attention to the language estate agents use. These are people who sell houses for a living. If anyone’s going to know an up and coming area, it’s them. Bear in mind, though, that this is also a common tactic for selling undesirable properties. An excellent way to make sure of the claim is to consider whether any of the above apply to the area. If yes, your estate agent is likely onto a good thing.