One of the smartest things you can do with your spare money is to invest it, and there is no market like the property market. Investing in real estate can be a big risk, but it can also bring you huge rewards, all depending on which investment route you prefer to take. At it’s very basic level, buying a house is an investment, and anything you do to improve that building is furthering that investment, whether you sell it in your lifetime or live it to family when you’re gone. And then you can also use the property ladder to your advantage and quickly turn around dilapidated houses for a quick profit. But, as with anything financial, the market fluctuates, so it might be that you pile a load of money into a property and then end up needing to sell just to break even. Which is where advisors and experience come into play.
A long term investment in property would be if you were to buy a home to live in and renovate as you please over the years. Buying property equates to a major asset which can be liquidated (sold) if you ever need it, the difficulting with liquidating this particular asset is that it’s your home. Some first time buyers, buy with the intent to sell and move up the property ladder. But ultimately that end investment is one where you’ll settle down in for a good few years. Just remember that there will come a time where that house will be sold, and you will want to get the right price for it. So look after the property; don’t cut corners when it comes to renovations, stay on top of any maintenance issues, and update the fittings and fixtures when you can. Your home should look exactly the way you want it to, but it will sell for more if people viewing the property can see themselves in the space straight away, without needing to do too many renovations of their own.
As we mentioned, a lot of buyers buy to fix up and sell, all to progress up the property ladder. And then there are those that renovate houses other than the one they live in. Doing up a house isn’t cheap, but it can be very profitable regardless of whether you are selling or leasing the property. Look at attending local house auctions to get the best deals on the property themselves, and try and learn renovation skills yourself. Chances are that you won’t be a trained electrician or plumber, so leave those things to the experts. But you can paint, assemble fittings like wardrobes, hang curtain rails and even lay carpet. Yes it’s quicker and easier for others to do the job for you, but the more you save, the more profit you make. Just remember that all jobs undertaken within the property need to be secure and safe for when you do sell the house.
Cryptocurrency & Real Estate
With all the changes that have occuring in real estate over the years, it would be naive to think that change isn’t going to come around again. And with the link between cryptocurrency and real estate becoming clear and of common use thanks to companies like IHT coin, it’s time to brush up on our knowledge of Bitcoin and blockchain technology. The simple breakdown of how this technology works is the idea that you can invest in cryptocurrency and then use that investment in a real estate transaction.
Becoming a landlord isn’t for everyone, and it does come with some potentially huge financial risks. If you have a tenant that breaks your property, builds arrears on rent, and whom you have to drag through the courts to have them evicted, then you are going to be very much out of pocket. However it can also be an easy way to make money. If the property you are leasing has little or no mortgage, then the money you receive each month is pure gravy. When looking to lease a property make sure that you do the right background checks for a potential tenant, and have regular inspections of the house. But also be conscientious; if something needs fixing then get it done as soon as you can.
Furthermore, rental property gives the investor 2 streams of income. Increase in capital i.e increase in the price of your property and monthly income from rent. Malta Sothebys Realty recently launched their buy to let property portfolio in prime areas for property investors.
Hold & Release
This type of property investment is only something you can do if you can afford the time. It can be done with a property you have renovated, or with one that you have brought during a dip in the market. The idea is that you hold onto a property until the market turns in your favour and then you sell it. This can be a risky venture as it can be very easy to misjudge the market, and because there is no guarantee that you will sell it quickly. But, if you can be a savvy seller, you could gain a profit without having to put any money into the building.