If you have a lump sum of money, it can be hard to know what exactly to do with it. The stock markets seem impenetrable to anyone who’s never really been involved with finance, and although putting your money into a high interest account to gradually accumulate more might seem like a safe move, there are definitely other ways that you can make more money with what you already have. Property is probably the most reliable method of investment. Here are some reasons that you should consider investing in property today…
You Don’t Need Specialist Knowledge
First of all, unlike the stock market, you don’t need extremely specialist knowledge to invest in property. A lot of it simply is about deciding what you want and making your decisions based on common sense. Plus, most people already have some experience with property, whether that’s buying their own house or renting, which means that they’ll already have some basic knowledge on where to start and on what people require from their homes. A lot of people who have made their money from investing in property didn’t even intend to do that in the first place – they just noticed that their own houses were increasing in value and had the idea about what to do next from there. It’s definitely much easier to research investing in property and looking for a house for sale than it is other areas of finance and investment – and you also won’t have to rely on experts as much.
It’s Extremely Flexible
No matter what your budget is, if you have a significant lump sum of money then you will be able to find a property that you can invest in, whether that’s a tiny flat that you want to rent to a student or a large house that you want to rent to a big family. You’ll also be able to find a financial plan that suits you no matter what exactly your aims are – maybe you want to make some cash quickly or you’ve got a more long term plan in place. No matter which is is, property investment will work for you. Some people choose to invest in property so they can improve the house and put it back on the market for a higher price, while others choose to get a steady income every month by getting tenants to live in the house. Although having tenants means that you need to assume some responsibilities as their landlord, the steady income often makes up for that.
You Can Get Creative
If you have a creative streak then there’s no better way to indulge it with interior design. Whether you want to do the actual work yourself or not, you can still decide what exactly you want your investment property to look like. If you want to make some big changes like building extensions or adding new bathrooms or renovating the kitchen, you could always talk to an architect to get some ideas about how exactly you can go about doing that along with retaining the character of the house you bought. Sprucing up a property may be a little stressful as it can be hard to coordinate, but it can also be a lot of fun – remember that a lot of the difficulty in renovating your own property often comes from having to make different plans for your everyday life being interrupted, but if you’re renovating an investment property then that won’t be as much of an issue.
There’s Plenty Of Demand
The property market is almost always booming, and demand is very much exceeding supply at the moment. Although there are plenty of new builds being created, they won’t be right for everyone, plus a lot of young people – or ‘millennials’ as they’re referred to by the press! – often simply can’t afford to buy their own properties, which means that they’re focusing on renting instead. In many cities, housing is in short supply – which means that you can swoop in and make your move and make a good profit.
It Feels Real
For a lot of people, property is an extremely popular investment because it feels real. Let’s face it, you can’t see stocks and shares and you can’t hold the stock market in your hands – but you can walk around the outside of a house you’ve bought, you can run your hand along the windowsills and fireplaces, you can look out of the windows and lean against the doorframes and wipe scuff marks off the floor. Being able to see concretely what you’ve done with your money feels great. You’ll feel both satisfied and reassured. Beside that, your property will always be an asset you can use if you ever get into other financial difficulties.
Your Tenants Will Subsidise Your Investment
Although you may have paid a pretty steep sum for the down payment on the house, you will probably have mortgage payments that you need to make every month. Luckily, if you have tenants, their rent will probably cover that, leaving some money over for you to pocket and make a profit from. You may also get some tax benefits from investing in property – all in all, property is absolutely one of the most affordable investments for anyone with some spare money.
It’s A Safe Investment
Finally, property investment is one of the safest things that you can put your money into. You can control it completely without having to rely on the fluctuations of the market or your broker. Although no market is ever completely stable, the property market tends to be much so than stocks and shares. It goes through some hills and troughs like any financial market, but overall it tends to be stable, which means that you get plenty of financial security. All you need to do is make sure that you’re smart about which property you choose to buy – pick an area that’s well populated and that features plenty of local amenities, particularly if you’re planning on renting to a family.