Property is one of the most lucrative ways to invest your money. Over time, the real estate market has increased in value substantially. In certain cities, property values have doubled and even tripled in just a few decades. It’s clear that owning a house, apartment or condo is a wise investment. However, it’s not always so simple. There are plenty of pitfalls along the way, and some have lost their fortunes by making mistakes. Today, we’ll walk you through the simple necessities of purchasing property. Follow this advice, and you’ll make sensible, lucrative decisions.
Location is everything
Becoming a successful real estate investor is all about understanding location. Location is the single most important factor of purchasing property. Why? Because it determines the value – and earning potential – of your real estate. The smartest investors choose a location that is likely to become popular in the future. They look for new transport links and signs of regeneration. By doing that, wise investors can capitalise on the overall rise in value of the neighbourhood. Avoid any areas that are currently being neglected.
Many investors think that the key to success is selling at the highest possible price. Now, while that is certainly true, there’s a more important aspect. Buying low is actually much more crucial. Investors make their money by undercutting the current market price. Hunting out lucrative real estate is all about finding a bargain. It’s then much easier to make a profit because you can sell at market value. Trying to sell a property at a high price is very difficult. So carve out your breathing room at the bottom end. Buy low folks.
Refurbish and flip
There are all sorts of ways to make money from your real estate investments. If you’re looking for quick gains, you can actively upgrade the property and sell it on. Done correctly, you can add a lot of value in a short space of time. Start with the kitchens and bathrooms as you can add serious value with an upgrade here. If you’re looking for a bigger rise, you could install an extension or conversion. Once completed, you can then revalue the house and put it back on the market.
Another way to capitalise on the earning potential of your house is renting it out. Renting gives you a source of guaranteed regular income. Becoming a landlord is, however, a full-time job so manage your properties carefully. In some cases, it works out better value to pay a realtor to manage your properties for you. You’ll also need to take out Landlord insurance, so balance your sums carefully.
Lastly, you can simply hold onto the property for a long period of time. In general, property prices rise significantly over the decades. If you hold you house for ten years or more, you’re very likely to secure a substantial profit. This is ideal for families who are looking to build up long-term wealth over time.
We hope that shines some light on the real estate investment market. Tread carefully and make the right decisions on your journey. Good luck!