There is undoubtedly a lot of money to be made in property. With house prices back on the rise, now’s the perfect time to jump on the moving train. Prices are rising especially fast in the biggest cities. London, for example, has seen a sharp increase. Some properties have increased up to 20% in value over just one year. There’s no doubt about it, it’s a great time to be on the property ladder. The tricky part is learning the ways to capitalise on your property.
How exactly do you turn your home into a money-maker? Well, that’s what we’re here for. We’ve been in the property market for years. We’ve seen what works, and we know what causes bankruptcy. Just like any other business, there is no simple way to make your money. It takes hard work and acute knowledge. Today we’ll start with the basics and share the crucial information with you.
Location, location, location
It might be an overused adage, but it’s still the single most important aspect of buying property. Buy in the wrong location and your home could lose value, despite your best intentions. Look for upcoming areas or prospective regeneration sites that are likely to improve. Avoid areas around town that are falling derelict and ignored. That’s why it’s so important to research your locations. It’s always best to buy and operate in a location you understand.
One of the quickest ways to start seeing a return on property investment is renting. You’ll present the house as a rental home and manage the tenants. Again, location is vital, and you’ve got to target your audience. Are you looking for students or professional renters? Choose your location and decorative choices carefully with your audience in mind. Don’t overspend and run the numbers with strict care. The best landlords operate a profit using only half their rental income. The other half is put aside for damages, taxes and admin fees. Do your sums and choose the right property here!
Refurbish and flip
Of course, there are more active ways of generating income quickly. One of these tricks is to refurbish an existing house. Again, you’ll need savvy knowledge and a strict budget here. Look for property for sale that has the potential for refurbishment. Ideally, look for homes that need simple cosmetic work done. Buy at the lowest price possible and refurbish the home to a high standard. Then, put it back on the market quickly. If you do everything right, you’ll make a tidy profit.
Play the long game
There is also a passive approach here. In general, the property market moves upwards over the time. After ten years, your home will naturally increase in value as it follows the market. The longer you stay in one place, the more you stand to make from your money. It’s one proven way to get rich slowly! By the time you sell up, you’ll have a healthy pot of money.
As you can see, there are plenty of ways to make money on the property market. But, it’s not easy. Work hard, set yourself strict budgets and understand the markets. Good luck!