Even though you have a full time job with excellent career prospects, a steady wage and you enjoy an excellent work life balance, there still might be a niggle inside telling you to have a go at side hustling. To obtain a little more money for your savings to prepare for your twilight years is never a bad thing. If you are looking for an avenue down which to make your money work for you in a more aggressive way, real estate could be the answer. Get it right and you might find that you can accrue lucrative amounts to top up your nest egg. Take a look to see if real estate can make real money for you.
Location
If you’re keen to plow some of your savings into property, you must check out the location in which you are looking to make a purchase. An up and coming area sounds great in principle, but it is risky. Some areas have been up and coming for decades and still haven’t seen the ripple effect from more well established areas. For your first real estate investment, it may pay to stick to the tried and tested locations that see an increase in house prices year on year. This way, you can purchase your bricks and mortar relatively safe in the knowledge that you will have a profit on your hands after five years or so. Aim to purchase the worst house on the best street, so you can add value to the property while it is in a fantastic location that appeals to a range of buyers.
Flip Or Rent
You will need to decide whether you are going to create a rental portfolio or whether you are going to purchase a fixer upper to renovate and sell on quickly. For a rental approach, you will create a blank canvas within the property and won’t go all out on fixtures and fittings as you will need to provide hardier carpet and paint that can withstand more wear and tear. For a property that you are looking to flip, you’ll need to dress the home to seduce potential buyers with a lifestyle. You can keep the walls white, simple and clean, but utilize your interior design credentials to provide the ultimate wow factor.
Budget
While you may have a hefty deposit in your bank account ready to be spent on a pad, you need to consider your budget for legal fees, mortgage repayments and renovations. The aim of real estate is to make money. Don’t be tempted to stretch yourself to the detriment of your current quality of life. Take the plunge, but always keep a close eye on your spending. Set up a spreadsheet budget detailing every purchase from your lawyer’s fees to the ball bearings you needed for the water pipes. With some savvy spending and budgeting, you can save money. Need to refit the bathroom suite? Head to a showroom and pick up an ex-display model. Cutting costs but not forfeiting quality is a must.
Heading down the real estate path might be daunting. However, if you do your research, check out property forecasts, and spend wisely, you can make an excellent second career or side hustle from the housing market. Before long you may have a portfolio of property making you a tidy profit for your retirement years.
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