Is property investment for you? This simple guide will help you investigate whether or not you should invest in property.
If you have some cash languishing in your savings account but you want it to accrue more than the bare minimum of interest, you need to consider withdrawing it and chancing your arm on a new venture. For some, property is the obvious option. Bricks and mortar have been seen as a low risk long term investment for decades. The early noughties saw bountiful returns on property investments as the markets were buoyant. However, you need to be more particular and ruthless with your purchase nowadays. Consider whether you have what it takes to become an amateur property investor.
Before you can purchase your second pad, you need to consider your financial situation. Before you apply for a second home loan you need to consider the reason for purchasing a dwelling. For the longer term safer bet a buy to let is ideal. This way you can rent out the pad that you buy and try to recoup the mortgage repayment that you need to need to make each month from the rent that you charge. Think of this transaction with your head. Don’t ever allow your subjective heart to take over.
Head to a property auction and opt for the worst house on the best street. Undertake a scheme of works and rent out the property to young professionals. These individuals want to be somewhere that is close to local amenities, where crime rates are low, and with great transport links. Have a desirable property in a sought after location and you can outperform the interest of a simple savings account.
Renting out a property over the long term gives you a steady and regular income. However, if you want to go for something a little more lucrative and seasonal you could try investigating vacation properties as rentals. These dwellings are of high quality with excellent fixtures and fittings. They will be situated in locations that are popular with holidaymakers. You could choose a beachside condo or a mountain lodge as your vacation rental. Purchase at the right price, let it out weekly over the vacation season and enjoy your own breaks away in the low season when your property is empty. Ensure that you save the cash that you make in peak season so you can pay the home loan on the pad over the course of the year.
If you do fancy a faster return on your cash, flipping could be an option. While you won’t be developing a long term investment, you can make some quick bucks if you buy well. Go for a property that needs renovation where you can add square footage. Extend a dwelling and you can outperform the market and make some lucrative returns. Sell quickly and your mortgage repayments remain low. If you can complete two or three property flips a year, this can turn into a whole new career opportunity for you. Many people have left their jobs for a foray into property development.
Follow this simple guide and investigate the joys of property development.