Nowadays, more of us are looking for more creative ways to make money. Whether that’s setting up a side hustle around our usual jobs or finding a way to make a passive income rather than working nine to five pushing papers in an office. The most straightforward way to achieve this? Investing in property. Real estate is a real money spinner and there’s always going to be demand for good quality housing, so you can’t really go all too wrong with things! Here are a few basics on the subject to get you started on the right track!
When you invest in real estate you have two main options: buying to sell and buying to let. Buying to sell is perhaps the most straightforward way to get involved in real estate. All you have to do is buy a property at a low price and then sell it on at a higher price. Your profit will be the difference between these purchase and sale prices. To sell on for more, you can simply find a bargain, or you could renovate the space to increase its value and make it stand out in the marketplace.
Buying to let – your alternative option – will see you purchase a property and then let it out to tenants who will live in it. If you take a mortgage out on the property, the tenants’ rent will cover its installments, essentially seeing them pay for your property for you. If you buy the property outright or clear the mortgage, the rent payments will give you a monthly income.
A big step in making a profit is making sure that the property you invest in is desirable – whether you’re selling it or renting it out. You can do this by carrying out refurbishments or renovations. To determine what changes will help the house stand out against its competitors is to take a look at other properties being sold or let nearby. Alternatively, you can ask an estate agent like the Authentic Real Estate Team for advice. Some renovations that generally boost a property’s value include extensions, loft conversions, en suites, having a new kitchen fitted, having a new bathroom fitted, considering larger windows or French doors and adding a conservatory or garage.
It’s important to remember that if you’re buying to let, you’re going to have to take on the responsibility of being a good landlord and provide your tenants with a good place to live. They’re paying your mortgage or income, so at the end of the day, the least you can do is have repairs carried out quickly and ensure everything’s up to scratch. You can use a management agency to do this or you can be in touch with the tenants yourself.
These, of course, are just the basics. There are plenty more complexities that come hand in hand with the whole process. But all in all, this is a good way to determine whether it’s right for you or not!