There is no doubt that even with the rises and potentially big falls that the property market can suffer from, when it comes to investment and making profit there are few better options than buying a building. The question, therefore, is not if you should become a property investor, it’s how to do it to make the most profit possible. With that in mind, keep reading for some useful ideas.
Become A Landlord
One option when it comes to real estate is to become a landlord. In this way, you own the property, but your tenants pay you to live in it. Depending on where the property is located, how much your mortgage is compared to local rents, and how long you’ve owned the place, you could make a substantial amount each month. Even if you can’t make a huge profit, if you can build a portfolio and own more than one property, it will soon add up.
There are pros and cons to being a landlord. One of the biggest downsides is that you can sometimes have empty properties, and therefore no income coming in. Plus, you must keep the properties in good condition and make repairs quickly, so you’ll need money put aside as a contingency. However, when it comes to making a profit, being a landlord is an excellent long-term choice.
If you don’t like the idea of taking care of tenants but you still want to make a profit through property, you might prefer to buy a house or apartment and then ‘flip’ it. This means buying something that is old and needs work, putting that work in, and then selling it for a profit. If you choose the right property, this might only take a matter of months.
Again, it will cost money to do this, but with the help of fix & flip loans, you can borrow the money needed, buy the property and do the work, and then pay back the loan once you sell, keeping the profit for yourself. Many people will then invest it into another property, and so on.
The key to doing well on this venture is to ensure you have good contractors to do the work for you, and that their prices are fixed and fair. If not, you might find costs spiral out of control and you lose any profits you might have made. You might even make a loss.
Live In It
Not everyone is comfortable turning property into a business, and yet they know it’s a good way to make money. If that’s the case for you, put all your efforts into buying one place to call home – make as many sacrifices as you can and put all your money to one side for as long as it takes to build up your down payment. Fix your credit score if it needs help. Keep thinking of your ultimate goal.
When you’re ready, you can buy a property. Then, live in it and enjoy it, keeping it well maintained. In the long-term, you’ll either be able to sell the property and make a profit (potentially after decades, of course), or you can pass it to family or friends in your will, giving them an asset to enjoy as much as you did.