With the housing market starting to stabilize after years of fluctuation, there’s never been a better time to invest in property. Whether you’re hoping to get your foot on the ladder, looking to buy to rent or wanting to make a quick profit, there are plenty of ways to make money from property investment.
Understand The Cost of Ownership
First, when buying your own home instead of renting won’t strictly make you money, it will help you make big savings in the long run. Many people who are renting privately, particularly in cities, end up paying rent that’s a lot higher than the monthly repayments on a mortgage would be. If you make the step into home ownership not only will you enjoy all the benefits of owning your own home, you could well end up saving money every month. Plus, the money you spend is going towards owning a home, rather than in the pockets of your landlord or letting agent. Want to get even more out of your home? Why not consider taking on a lodger or letting out a room to a friend?
Know What It Takes To Be a Landlord
If you’re not planning on living in your property but rather making a profit from it, you have two main options. The first is to make your home available to rent. The rental property market can be lucrative, particularly in areas popular with students and other areas where lots of people want to live. You can go through a letting agency, who will take care of all the hard work such as finding tenants, or go it alone. While the latter option is certainly more work, it will make you the most money in the long run. Many people who only own one or two properties choose to let them themselves, particularly if they live in the area and can easily respond to tenant’s needs. If you live in an area popular with tourists, you can also consider renting out your property as a holiday let. This option requires more work, with a quick turnover of residents, but can earn you thousands of dollars a month even on smaller properties.
Another way to make money on your property is to sell it on for a higher price than that which you paid. While those with a knowledge of the property market certainly have a head start, no specialist experience is required. Take a look at trends in your city and what neighborhoods are desirable – you’ll often find it easy to predict which area is likely to be the next fashionable place to live – and look for properties there. Areas that are ripe for gentrification are great bets – look at anywhere adjacent to a neighborhood that has recently been revamped. You can also make money by doing up a run down property. While skilled labour is necessary for important structural jobs, you’ll be amazed at how much money you can make on a property by employing simple tricks of interior design.
Contrary to popular belief, you don’t need any special skills or experience to make money from property investment. With a little research and some forward planning, you could start making money from your property in no time at all.
How else can you make money by investing in property?