Thursday, November 1, 2018

Getting Involved in Real Estate for Profit


If you’re looking for a wise financial investment to make, real estate could prove to
be the best option for you! Investing in real estate gives you a reliable source of
financial security. If you are an employed individual, you never know when you might
be made redundant or lose your job - having savings from a sold property or having
a steady income from letting a property out can help tide you over until you find a
new position. If you are self-employed or run your own business and are going
through a rough patch with little profit, you can also benefit from this. So, let’s take
a moment to look at both buy to sell and buy to let real estate.

Buy-to-Sell Basics

Buying to sell is perhaps the simplest way to get involved in real estate. You quite
literally buy a property at a low price and sell it on at a higher price, consequently
making a profit in the process. People are paying record amounts of money for
good quality properties at the moment, so you might as well cash in on the trend
while people are willing to cough up a lot of cash!

Buy-to-Let Basics

Buy to let real estate helps to secure a monthly income. If you have used a
mortgage to purchase the property, rent payments from tenants can help to clear
the mortgage. If you charge a little extra per month, you can have a little extra in
your pocket. If you purchase a property outright, everything that you bring in will
be pure profit.

Refurbishing

When you first get your hands on a property, you may want to consider refurbishing
it or renovating it. This will help it to stand out on the market, which is extremely
important, regardless of whether you intend to buy or let. The best way to determine
how to outshine other properties in the area is to conduct viewings of other properties
being sold or let nearby. An estate agent will help you to do this, or they will be able
to inform you of what other properties have that your property needs to match or
exceed. You can then carry out the recommended renovations and increase your
asking price or rental price. Common renovations that you might want to consider
can include loft conversions or extensions (which provide your property with an
extra room), installing skylights (which flood spaces with natural light), sprucing
up the kitchen, adding a conservatory, or adding a garage (where people can
safely store their vehicles and reduce their insurance premiums).

Maintenance

If you are intending to let a property out, you need to remember that you will
become a landlord and that becoming a landlord comes hand in hand with a whole
lot of responsibility. Not only will you need to ensure that the property is up to
scratch when a tenant moves in, but you will need to maintain it for the entire
time they are living there too! Of course, certain responsibilities such as cleaning
will fall upon the tenant. But if something breaks or needs replacing, it will be
up to you to rectify the situation. Make sure that your tenants can get in touch
with you should they need and arrange regular checks to ensure that they are
keeping the property in ship shape at all times! It’s a good idea to always meet
your tenants before allowing them to move in. This will give you a better chance
of finding someone who will avoid destroying or damaging your property.

These, of course, are just the basics of getting involved in real estate. You are likely
to have to learn a whole lot more along the way. But hopefully, the above information
will help you to get started in the right direction!

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