In some places around the country, properties are earning more value in a year than their owner’s salary. Thanks to the property market, doing nothing can sometimes make your fortune. When you hear facts like this, it makes property investment seem like a no brainer. The trouble is, the reality is not that simple. If you are lucky enough to own wealthy property, then yes, you can make a small fortune. If you’re new to the game, however, it can be quite difficult.
Difficult, but not impossible. Even for first time buyers and those looking to get onto the property ladder, there’s money to be made. Today, we’re going to show you the best ways to start making money from property. In general, it takes a combination of hard work, research and a little luck. Without further ado, let’s look at our complete guide to making money from property.
Refurbish and Sell
This is one tried and tested route to forcing equity into your property. The key to this one is buying cheap and turning it around quickly. You’ll need to know what you’re looking for and how to find a bargain. The best places are auctions here. Once you’ve found the right property, refurbish it quickly and get it back on the market. The key places to refurb are bathrooms, kitchens and extensions. These areas add huge value to a property and you can stand to make tens of thousands. That’s if you do it all correctly.
One way to secure a consistent return from your property is to rent it out. This is not quite the cash cow it once was. However, it is a steady investment when executed correctly. There are plenty of factors involved here and you’ll have to stick to a tight budget. Think about whether you’ll manage the property yourself or get a letting agency to do that for you. If you manage yourself, ensure you are covered for every eventuality with landlord insurance. The trick with renting is targeting the right clientele in the right location. Take your time to get this one right.
Play the Long Game
In general, the property market rises over time. Of course, there are slumps and there are peaks. In the UK, we are just emerging from an extended slump where the property market has suffered. However, we’re starting to see property prices rise again, as is the historic trend. If you’re willing to stick it out for the long run, buying property will slowly make you a small fortune. Buy a property and hold onto it for twenty years. Even if you live on a budget, this is a sure fire way to create a pension pot.
All of the Above
Any sensible investor will tell you that the best investment portfolios are diverse. To make money from property, your best tactic is to spread your returns in a number of ways. If the renting market divebombs, make sure you can free up cash by flipping a refurbished property. Ensure you have a number of options at your disposal to balance out any risk.
The property market is diverse and lucrative. Follow these tips and you’ll land yourself a small fortune!