Are you looking to invest in real estate? If so, there are more options available to you than you may have realized. In this article, we will look at some of the opportunities worth considering, with a few tips on each one to help you make the most of your investment.
This is the most common reason why people invest in real estate, and why not? After all, people will always need somewhere to live, so why not capitalize on that. Still, there are pitfalls to avoid. Choosing the wrong location is tantamount to failure, so it’s worth buying real estate in an area of natural beauty or in a well-populated town, rather than a place that nobody wants to move into. By choosing the right property in the right area, you will have a valuable asset on your hands that will generate income for years to come. But please, for your tenant’s sake, be a responsible landlord!
Rather than the residential market, you might consider buying a building for commercial purposes. You can then rent it out to local businesses and industries, which will often yield you a higher rate of return than that from a residential property. You might also consider a semi-commercial property, renting out the bottom floor as a shop or an office space, and the top floor as a flat for residential purposes. You can make more money with a multi-purpose building, renting it out to several parties instead of the one tenant. We have some essential tips for those interested in commercial investing, so follow the link to our previous article.
Also known as home flipping, this is where the investor buys a property for a low price and then sells it on for a greater price after renovating it. The real value comes from buying a fixer-upper in a nice neighbourhood, doing it up and then selling it on to people looking to move into the area. You need to be careful, of course. Carrying out renovation work yourself is a no-no unless you are an experienced tradesman. It’s better to hire contractors and building firms to take on the work for you, ensuring the house is safe to move into. Within the renovation work, you should also consider the ways you can add value to the property, especially for the millennial market who make up a large portion of home buyers today.
“There’s gold in them thar hills,” or so the song goes, but there is truth here. Considering the pitfalls in buying property, investing in land may be a better idea. There is less competition, so you can negotiate prices with the seller. You can use the land for what you want, whether you hire it out to others to make a profit, or start your very own business, such as a caravan park. And there are less maintenance costs too. You may need to hire the services of a landscape gardener occasionally, but you won’t have to deal with the regular repair expenses of a buy-to-let property.
This can be a very lucrative way of making money, but you will need to invest in a property in a location people want to holiday in. Consider the places where tourists flock to every summer, and buy accommodation to match their needs. You don’t even need to buy a house. A chalet or a static caravan are viable alternatives. Furthermore, you also have your very own place to stay when you need a holiday, whether you go for peak or off-peak season.
When it comes to real estate, the horizon is wider than you may have imagined. You will need to commit to research of course, and your local estate agent may be able to give you some qualified advice. Still, if you are looking to generate a passive or an active income, our ideas should give you something to think about.