Thursday, December 12, 2019

5 Ways To Make Money From Property

It’s never too late to start making money through the clever use of property. There are many ways to make money through property and they appeal to a wide variety of potential investors with various amounts of capital to invest, so if you’re thinking that property could be your route to earning your first million then here are 5 different things that you could try. 

  1. Buy-to-let
    Buying to let is one of the most common ways for people to invest in property and involves buying a house or flat with the sole purpose of letting it out. If you are buying the property with a mortgage then the rent can help you to pay off the mortgage more quickly, eventually making you a profit, of if paying with cash the rent will immediately be cash in your bank and you can sleep soundly knowing that you have a property that you can also sell should the market change in your favor. Although buying to let is a very attractive prospect to many home-owners it’s important to recognize that becoming a landlord comes with its own set of responsibilities.
  2. Renovate to rent or sell
    Another common way to enter the property investment market is through property renovations. Property renovations usually require a good understanding of renovation costs to ensure that you profit from the work you put into each house. With property renovation sometimes very simple changes such as a re-wire, new plumbing or a general face-lift can add tens of thousands onto the property value making it an easy way to make a profit. As with all property investments, property renovation isn’t without its risk and buyers should be aware that should the market change or their renovations cost more than expected then they can still make a loss.
  3. Build to rent or sell
    With land, planning position, a little time and some building know-how, building property can be a very profitable way to make money. Whether you build the property to sell or to rent out, be sure to use experienced home builders who can ensure the timely delivery of your project and assist you with the technical aspects of home building which can become costly if done incorrectly.
  4. Become a venture capital investor
    Developers often come to venture capital investors to help them fund their development projects in place of taking out a loan from a bank. If you have a more significant amount of money to invest then becoming a venture capital investor enables you to invest in high yield projects with relatively little effort, though it does come with a slightly higher than average risk.

  5. Buy and sell repossessed property A slightly lesser-known area of the property market that people can invest in is that of repossessed property. Property is often repossessed if the owner fails to make the necessary repayments on their mortgage, it is then owned by the bank and is often put back up for sale. When buying property from the bank you can often acquire it for less than the market rate, making it easy to quickly turn the property around and make a profit.

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