The world of real estate is a lucrative sphere in which to make some extra cash. If you have a full time job but you don’t want to watch your savings wallow accruing minimal interest in a bank account, consider real estate as an investment option. You may assume that you need to purchase a pad, do it up and sell it on at a profit. This is flipping and is a viable way of making money from property. However, you can explore a whole host of real estate investment options. Read on to find out what they are.
Flipping property is the bread and butter of property investment. If you can do the numbers and ensure that you purchase a dwelling that you can renovate and sell on at a profit, you are a real estate developer. The art of flipping is a tricky one to master. You need to consider how you can add value to a pad. Don’t buy the best house on the best street as the ceiling province will already have been reached. Instead, focus on locating the worst house on the best street that you can add square footage to or renovate to make it highly desirable. Opt for places with great transport links, good amenities and low crime rates. These areas will always be highly sought after meaning that you can list your little piece of real estate and sell up quickly, giving you chance to take the equity and reinvest in another property.
New Build Off-Plan
Many people choose to invest in properties that haven’t even been built yet. By funding a building project, you can get in early and have a say in how a construction project develops. Or alternatively, you can choose to be a silent partner. Consider seeking the advice of a property lawyer like Jacob A. Kupp if you are keen on a new build construction project to guide you through the legalities. You might want to secure a guaranteed percentage profit of any sale. Buying new-build and off-plan is much more hands off meaning that your time won’t be taken up with scouring the market and securing tradespeople. There is an added element of trust in that you need to allow someone else to project manage a build with some of your cash.
If you are keen to secure a more long term investment that will see you holding onto a pad for longer in an effort to build your pension pot, you could become a landlord. By purchasing a pad that you renovate to make fit for letting out, you can secure tenants that will pay your mortgage each month through their monthly rent. This means you can have an asset that ticks over, costing you nothing or very little. This allows you to hold onto the pad, before selling up in a decade or when the mortgage is paid off. This will allow you to prepare more readily for your twilight years and can allow your money to work more aggressively for you.
If you aren’t keen to be as hands on, you can instruct a lettings management company to take care of the maintenance of your pad. This will cost you a little money each month but could enhance the quality of your life.
Follow this simple guide and you can invest wisely in real estate.