When you hear the word investment, it’s common to conjure up images of property portfolios. Buying houses and apartments is one of the best ways to make money, both in the short and long-term. If you fancy yourself as a property magnate, this guide will help you turn Monopoly money into hard cash.
Renting Versus Selling
When you invest in property, there are various options open to you, including selling and renting. If you want to make money quickly, you may want to sell up at the earliest possible stage. However, if you’re looking to boost your income on a monthly basis and you’re investing in the long-term, renting your property out may be a better bet. When you sell, you’ll pocket any profits immediately, but you’ll be eliminating that property from your collection. If you choose to buy a rental, you keep hold of the new home, and you’ll be generating an income from day one.
Although there are benefits of renting, selling is an easier option, as being a landlord requires continual investment. Even if the house is pristine, it’s highly likely that your tenants will encounter issues at some point. When you rent a property out, you’re liable for problems like broken water heaters and washing machines that don’t work. You also have to be aware of safety guidelines and legislation that is designed to protect tenants. There’s also upheaval involved with renovating and repairing rental properties, especially if you have a multi-tenant building. If you do find yourself in a situation where you need to undertake work, it’s wise to look for commercial remodeling experts. Tenants need notice, and you may have to provide alternative accommodation for them if they’re unable to stay put. If you do choose to buy and then search for tenants, it’s a good idea to set up a contingency fund and to look for a management company if you’re short on time.
Finding a Property Gem
Making money in real estate is all about finding the right property in a sought-after location. Work out who you’re trying to target, how much you want to spend and where you want to buy, carry out extensive research to learn more about the area, and negotiate a price that represents value for money. If you can’t afford an exclusive address, look for up and coming areas. If you’re in the city, for example, keep your eyes peeled for signs of regeneration and investment, such as new housing developments, apartment blocks, shops and restaurants. These are often positive indicators that the area will become increasingly appealing to buyers and tenants in the near future. If you find a property you love, stick to your budget and drive a hard bargain.
Are you keen to make money from bricks and mortar? Many people choose to try their hand at property investment, but not everyone enjoys a success story. If you’re thinking of buying, consider your options carefully, research the local market, and don’t be afraid to take risks if there are clear signs that your gamble could pay off.