For many people, their house is just their home. It is where they go when they are no longer needed at the office for the day. However, for business people and budding entrepreneurs, property represents a way to make money. One way of doing it is by buying a house that may be somewhat rundown, investing a little money in it to make it hospitable, and more importantly, marketable, and then selling it. The idea is, of course, to make more money on the sale than the combined amount that you needed to purchase and renovate the house. This type of business strategy is quite exhausting because you constantly need to do several jobs at once to succeed. First, you need to be able to find and assess properties that are for sale.
Whether or not they are a good prospect can depend on the extent of the required renovation, the area in which the house is located (more specifically, whether it is the sort of area where people want to buy houses) and whether the property will be subject to any extra costs (for instance, would you need to get planning permission to renovate it, and what sort of taxes would be levied against you in the event of the purchase). Then you need to actually fix the place up which requires you to constantly liaise with builders and architects. Then you have to have the requisite savvy to market the house properly such that you can make a profit. Thankfully, there is another way.
Instead of trying to flip a property, you could instead rent it out. While flipping it can make you an immediate profit, renting your property to tenants is a better long time option because you continue to get paid month after month. Of course, there are difficulties with everything and buying to rent is no different. You may be reticent about getting tangled up with tenants because you have heard horror stories about recalcitrant people who do not pay on time, or at all, and then will not leave when you ask them to. Your only recourse in that eventuality is to start legal
proceedings to have them evicted, but this costs time and money that could be better spent on anything else. However, if you do want to build your property portfolio and make money without having to drag someone to court, you should consider professional property management. If you entrust your property to professionals, they will find respectable, reliable people and take care of all the paperwork. For a small commission, you will not need to worry about dealing with tenants, and you will receive your money every month.
Investing in property is good for lots of reasons though. The housing market can be volatile sometimes, and it is particularly susceptible to suffering when the economy does, but it is robust, and it bounces back. Property investments always tends to appreciate too. In fact, house prices are set to rise for the next fifty years, which makes this a good time to buy.
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