Before the banking crisis of 2008, property investment was a booming business that made substantial profits for big and small investors alike. Anyone with sufficient drive and determination could renovate a house and sell it for a healthy profit, and it was a good business to be involved in. That changed post-2008, initially because of the downturn in the economy in general, and then as a result of the clampdown on mortgages which made them far harder both to secure in the first place and then get anything like the amounts you could previously. Ten years on, how is the market looking now, and how can you make money in property?
Investment
There has been a definite improvement in real estate sales over the latter part of the decade, and confidence in property as an investment has increased. You still can’t make the money you could have eleven years ago as there are tighter controls in place to avoid anything as dramatic occurring in the industry again. However, although growth may be slower, the security of investments has improved. You can now make a healthy return on your investment again, so if you have some cash to speculate with, it’s worth seeing what is on the market.
Renovations
One of the best ways for amateurs to get into property pre-2008 was to buy a cheap house, add value, and sell on within as short a timeframe as possible. If you’re planning to start out by purchasing a property to renovate and sell on, do make sure you have prepared accurate forecasts of costs versus profits, as you won’t be able to rely on the large markups that were normal before the crisis. However, it is now possible to make money again this way with less risk than in recent years. Be sure to buy a property that is a good prospect for sale, not just an interesting project.
Professions
The property industry supports numerous career opportunities, such as real estate sales and mortgage broking. As the market in property continues to grow, so demand for these services grows with it, and it can be a shrewd way of making profits out of property without the associated risks. If you’re considering one of these professions, check what legal requirements there are for you to practice in the area you’ve selected; for example, you need to find an Arizona RI (responsible individual) if you want to get a mortgage license in that state. You may also need training and qualifications, and it’s a good idea to have an in-depth knowledge of what you need to do to succeed and how to avoid any pitfalls along the way.
Peripheral businesses
An increase in house sales means more work for other industries like removals, self-storage, designers, tradespeople, DIY stores, garden centers, insurance brokers, and many more. If you want to take a share of the improved prospects in property, you might well find there are opportunities in one of these areas that would suit your abilities.
There is a much better economy within real estate now, and although it’s not likely to reach pre-recession heights, it is worth looking checking out as a route to a healthy income.