Many savvy financiers have made their fortunes on the property market. It is certainly one of the more lucrative routes to take if you can get on the housing ladder. Of course, there are risks involved, just like any other investment. The housing market fluctuates, with all sorts of factors influencing house prices. However, if you make sensible, calculated choices, you stand to make a lot of money from property. It’s important to understand that there are a variety of different ways to grow your property portfolio. Each has its benefits and drawbacks. We’ll show you what your main options are.
If you use your head, it’s possible to make money on property, no matter what the market is doing. A good financier knows how to make money, even during a recession. But, it all starts by choosing the right investment, and setting a long-term plan. If you’re still intrigued, keep reading, and we’ll show you everything you need to know about making money in property.
Choose the right house
The single biggest mistake made by property investors is choosing the wrong house. Or, more importantly, choosing the wrong location. We never advise buying property in an area you don’t know well. You need to stay ahead of the curve and spot the up-and-coming locations. Look for locations that are currently being redeveloped or linked with new transport routes. These are the areas that will increase in value. It also depends on your strategy. If you’re looking to rent the property to tenants, an apartment might prove better value for money than a house. Consult an estate agent like Greenaway Residential for more information on your local area. It all starts by choosing the right property.
Play the long game
One tactic is simply riding the housing wave as it slowly increases. Over time, the housing market tends to follow an upward curve. It will hit a few road bumps along the way. House prices might dive for a year or two, but you can guarantee they’ll recover. If you hold on to your property for ten-twenty years, you’re certain to make money. This approach is a get-rich-slowly type of route! But, it’s a good way to set yourself up for the retirement, without incurring much risk at all.
Rent it out
One of the most common ways to make money on your property is to rent it out. Rental properties provide a steady stream of income which can prove very useful. The trick here is to keep a very tight focus on your profit margin. You’ll need to decide whether you’ll manage the property yourself or pay the estate agents to do that for you. The best landlords tend to set aside half of all rental income for expenses and maintenance. Do your sums, and make sure the remaining 50% is a profitable margin.
We hope that provides a quick overview of how to make money with property. When you invest sensibly, there are huge potential returns here. Use your property portfolio to set up your financial future.