3 Simple Ways To Make Money From Property

If you have always had an eye for a bargain, you have a tidy little nest egg in a savings account, and you want your cash to work more aggressively for you, then you might be tempted to take a foray into the property market. Investing in bricks and mortar can be one of the safest ways to invest your money for the long term, with an eye on seeing a large return on your investment. Making money from property isn’t all luck, and it requires a savvy mind to know when to buy, what to buy, and where to buy. Take a look at these three simple ways that you could make money from property.

Go Overseas

Many people choose to buy in their hometown because they know the area well and they can always keep a close eye on their asset. However, by purchasing overseas, you have the chance to get a foothold on a burgeoning market that has not yet realised its potential. This gives you a greater chance of making more money than you would locally. It can be scary opting for an overseas property. Don’t think that you have to buy a run down fixer upper to then renovate and rent out. This can be incredibly complicated as you won’t have the time to oversee the work yourself and you will be relying on locals to complete the work on time and to budget.

Instead, you may consider other buying alternatives like the HDB BTO opportunities in Singapore. Here, flats and apartments are built to order. Investors can put their name down for a pad and this will be built alongside others as part of a project. When complete, you can then utilise a foreign property lawyer and management company to oversee your short term rentals. Pick a vacation hotspot, and the rent that you charge can be even more lucrative.

Renting Out

Property is always a better long term investment than a short term one. The noughties property bubble has now well and truly burst and it’s more difficult than ever to just flip a property and make a profit. Instead, you should be buying a fixer upper with an eye on renting out the property for the long term. When you look at the sort of dwelling to purchase, take a look at the property market forecast and history of the area. If property prices have risen for the past five years, you know that the region is profitable.

Go for areas that have good transport links, decent schools and a good level of amenities. People who rent want to have everything on their doorstep. When you find a pad that you like, consider the scheme of works that you will need to carry out to make it a viable business proposition and offer accordingly.

When you are ready to renovate, make sure that you keep the colour palette neutral and you don’t opt for high end fixtures and fittings. Remember, this is a rental property. Your tenants won’t be expecting marble quartz worktops or expensive plush carpets. A blank canvas with fittings that can be replaced easily and cheaply is more conducive to a business investment. If you get too personal with the property, you can start losing money.

Flip

If you are tempted to flip, consider purchasing the worst house on the best street. Location cannot be changed but a property can. To find the cheapest fixer uppers, it may be worthwhile heading to a property auction. Here, you will have a catalogue of properties that you can visit. If you like the look of one or two, make a note of them and read the legal pack. This way, if there are any covenants or restrictions on the property, you will find out. An unmortgageable property needs to be avoided, as does one with severe structural defects.

Set yourself a budget and stick to it. It’s all too easy to succumb to auction fever and pay over the odds, meaning that you won’t make a profit on your purchase. Consider your renovation plans, factor this into your budget, give yourself a contingency, look at the ceiling price for the street and work out if you have a viable investment.

Property is still seen as the safest investment that is relatively low risk, especially in the long term. If you are keen to take a step into the property market, you must do your research. It’s crucial that you know your locations and property types, before making a purchase. Only then will you be able to make a success of your property development dream.

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© Copyright 2019 Antonia, All rights Reserved. Written For: #tidylife
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