Property is almost always a good investment. Unlike with other types of investing, the risks are relatively low and you’re almost guaranteed to increase your money year on year. While there are peaks and troughs in the market (and a huge collapse of the property market following the recession that can’t be overlooked) overall, property appreciates in value each year and there’s always a high demand for it. So whether you’re looking to make money by selling or renting, it’s pretty straightforward to do. Whether it’s at home or abroad, here are just a few things to bear in mind to make sure you’re choosing well and making the most of your investment.
Buying and Selling
When you think about making money from property, the first thing that springs to mind is probably buying and selling. And this can be an excellent way to make a large chunk of cash in a short period of time if you know what you’re doing. You need access to a team of reliable tradesmen, and a good understanding of the property market. You can take run down properties, give them a makeover and sell for a significant profit. This allows you to turn unloved and run down property into someone’s dream home, and can also help to regenerate the area. Abandoned houses attract crime, squatters and more, and so by turning them into nice places to live you help to keep these things away.
Renting to Tenants
Instead of buying and selling for a profit, another option would be to rent to tenants instead. If you hire an estate agent to manage them for you, there’s very little hassle to you and it’s a great way to earn some easy money. If you’re thinking ‘I want to sell my house and free up cash’ later down the line you have the option to do so. But in the here and now you could even rent out a few and earn a significant chunk of money each month for very little work. Having money tied up in property this way is useful, it appreciates in value each year and you can sell them to access the cash if needed. But as it’s not available, it’s not something you can spend and waste.
Find The Best Properties
Whether you choose to rent or sell, you need to find the right properties to maximize your profits. For example, if you want to make money renting then flats and apartments in busy towns and cities tend to do well. Young professionals who work in the city are always after places to live which have a short commute. If you’re looking to rent to students, then it, of course, makes sense to find something that’s within walking distance of a college or university, otherwise, check out transport links. Larger properties can be rented by the room which allows you to earn extra. If you’re looking to do luxurious makeovers and sell for a profit, make sure you’re buying real estate in an area that those purchasing luxury homes will actually want to live.