Every savvy financier knows that there is plenty of money to be made in property. Unfortunately, it’s not quite as simple as it once was. In the last five years, the housing market has been very shaky. Prices crashed and lots of properties took a big hit in valuation. Sellers struggled to achieve their asking prices, and the market slowly ground to a halt. The last twelve months have shown a positive upwards curve. It certainly looks like house price are on the move again. In the last year, the market grew a steady 9%, faster than any period in the last five years.
So, is it time to start investing in property again? It certainly seems like the time is right to make moves. Your first steps will simply get you onto the property ladder. How exactly do you make your money? Well, there are a number of methods, each with their unique benefits and drawbacks. Today, we’re looking at the ‘big three’. These are tried-and-testing techniques that guarantee you a return on investment. But, only if you’re smart! Let’s take a deeper look, shall we?
Play the long game
The simple way to make money from property is to hold onto it for as long as possible! It’s certainly not a get-rich-quick scheme, but you’ll make big gains over time. In general, the housing market tends to follow the same pattern. It stutters over monthly declines and peaks. However, over a period of thirty years, there will be an enormous upwards curve. House Owners in UK cities like London have seen an increase of more than £100,000 in just a decade.
Once you’re on the property wave, you can ride it to the top. This is very low risk investment, so long as you plan on selling much later in the future. As you can expect, if you try to sell during a temporary dip, you may have trouble.
Renting the property out to tenants is many people’s preferred option. It provides a constant stream of rental income, with the opportunity to sell the home eventually. Of course, there are lots of factors to consider here. First of all, you need to search for properties in the right area. If you pick a declining community, the rent price will fall over time. Next, you’ll choose your clientele. Do you want students or professional renters? This will dictate whether you furnish the property. Lastly, you’ll have to consider management and maintenance of the house. If you balance all these aspects, you stand to make a strong, reliable income.
One of the quickest ways to make money is by renovating a property and selling it quickly. It can be a risky option, but if you get it right, the return on investment is enormous. The trick is to snatching a property with potential and spending just enough money to turn a profit. It’s all about balancing risk and profit margins here. If you love a big project, this is ideal for you.
These are the three main ways of making money from property. Each are very effective and serve their own purpose. Good luck with your housing venture!