As an investor you’ll be well aware that there’s always some element of risk involved with the way you make your money. Whether it’s in stocks and shares, companies, commodities or cryptocurrencies, things can change quickly and they won’t always go in your favour. However, when it comes to property it’s a little different as your investment is relatively safe. Not only this but you can make a substantial amount of money in a short period of time, or make an investment and watch it grow depending on the route you take. Since property prices tend to increase each year your investment goes up, and since there’s always a demand for places to live there’s no worries of your venture becoming obsolete, even in today’s volatile world of business. If you want to know more, read on.
Decide on the route you’ll take
There are numerous ways you can make money with property, it mainly depends on your budget and experience. Consider if you’ll tap into the holiday market and buy an airbnb or a holiday home to let out. Another option could be getting a fixer upper flipping it after renovating it, being a silent partner and investing cash into a trusted developer which would allow you to step back but cash in on the profit once it’s complete. If you really want to get involved you could look into buying a plot of land and having some buildings constructed from scratch, purchase a plot, and have an architect help you to bring your vision to life. There are plenty of different routes you can go down when it comes to making money from property, so decide on the right one for you.
Work out your financing
The money you’ll need to put in will largely depend on the route you go down. If you’re renting out properties for example you might only need enough money to cover the deposit as from there you can take out buy to let mortgages. Your tenants monthly rent payments will cover this and over time, eventually the house will be bought outright. If you want to flip houses or build new properties then you’ll need money up front- either in the form of savings or a loan.
Do your research
As with anything, getting clued up and doing your research is the best way to go about things, especially when you’re going to be putting a lot of money into it. You will need to know which markets different properties will appeal to, that way you know how much to spend on each one and where the best location for each kind of property should be. If you’re going to be building properties from scratch, you’ll need to find a good architect who can create anything from apartments to townhouse design depending on the kind of project you’re planning. Knowing about things like ceiling prices and building restrictions from the get go will save you a lot of money and hassle overall.
