When it comes to investing, there’s always some element of risk involved. Companies can go bust meaning you lose money on your shares, the prices of commodities can fluctuate and things like cryptocurrencies can be particularly volatile.
You need to be very knowledgeable, and know when to stick and when to bail in whatever you’re investing in- but there’s still always an element of chance there as the prices of these things are out of your control. You can still lose it all even if you do everything seemingly right. If you want to invest but don’t want such an element of risk, then putting your money in property can be a smart move.
Unlike most kinds of investments, property almost always appreciate in value each year. While things like the recession and other dips in the market mean people have lost money in the past (and it’s possible something similar could happen again) on the whole it’s a pretty safe bet. Property is always in high demand, so whether you want to rent or sell, you have the option of doing so.
Over time your investment will grow far more than it would in any high-interest savings account, and as long as you have insurance to protect the building itself against damage its something that could be kept in your family for generations or be sold whenever you like. Here are some of the best ways to earn money with property.
Buy and sell
Buying a property that’s run down but has potential is your best bet. It allows you to secure it at a cheap price, and you can then renovate it and bring it back up to scratch.
Choose the right property and area and you could make a fortune doing this in a short space of time.
Just be sure you’re aware of things like ceiling prices as it means no matter how much you spend on a property in a certain area, it will only reach a maximum figure. You should also be aware of the potential buyers and renovate a home based on what they’re likely to want. For example, small city apartments for professionals should have a good layout maximising the space and include things like built-in storage to stop it from feeling cramped and cluttered.
Families generally want something with two to four bedrooms in a safe area with a nice garden. Take the area and outside space into consideration, and be aware of the kind of buyers so you can create a home that’s in high demand. You will need a good team of builders who are fast and efficient and can do a good job while offering you a price that still allows you to make a profit. Investors doing this can earn 20, 30, 40 plus thousand in a matter of weeks by knowing what needs to be done, getting a property finished and back onto the market.
Rent locally or abroad
If you’re looking for an investment that will keep on giving back, look at houses and apartments for sale and go on to rent them out. You could either buy in the country where you live and rent it out as a home, or you could buy abroad and rent it out as a holiday letting. This will get you more money, but there will be quieter times in the year. Something like this can be great for retirement or if you want to quit your job and have access to a good amount of income each month. If you hire an estate agent to deal with tenants, there’s no hassle to you and each month when the tenants pay their rent it’s money in the bank with no extra work from you needed.
Develop new properties
If you want to do something a little different, how about buying a plot of land and having some buildings constructed from scratch? Councils are often keen for investors and developers to renovate areas of wasteland as it re-invigorates the area- which is great as they’ll be on your side. Purchase a plot, and have an architect help you to bring your vision to life. Approach the council with your proposed plans, and they will get back to you with any changes if needed. Sometimes it might be a case of slightly adjusting the style to fit with surrounding buildings, or changing the size of the properties to suit the people who are currently in need of housing in the area.