Paving The Way Forward – Investing In Property

When it comes to investing your money, nothing can be seen as a completely safe market. The one place where you the safest though is with property investment. Most people presume that property investment involves buying, selling and renting. There are more options than just this when you have invested in your first property.

Finding Your Property

The first step any investor needs to make is sourcing the investment. Deciding on whether the property will be one of luxury or foreclosed property could be on your shopping list. The possibilities are many.

Deciding on your property though may initially be as simple as searching homes for sale but you should also be considering location and relevance. Will the location be relevant to the need of your investment.

You should also be taking into consideration the property itself. Looking closely at whether or not your plans will turn into profit is going to be vitally important.

Flipping The Property

One of the most popular reasons for property investment in flipping. If you aren’t familiar with this, flipping is buying a run-down property at a low price, to renovate the property and selling for a higher price. You may need to get experts at fixing some of the features of the home like window replacements.

This always sounds like a fantastic idea and many believe the profit margin to be the largest when it comes to investment. Those people would be very wrong. People only generally look at the gross profit of the flip. This, of course, does not take into consideration the costs of work carried out. In truth, this can be one of the most time consuming and least profitable ways for you to invest your money.

The Buy To Let Secret

Every investor knows about buy to let. It is a brilliant source of income and providing you have great tenants, you can see a good monthly income that could cover any mortgage costs plus a little extra.

So what is a secret then? Well, how about if we took step one and mixed in a little step two and then placed a cherry on top? One slowly growing trend when it comes to buy to let is HMO (house in multiple occupations) an HMO is an incredible profit turner for any landlord or property investor. These properties are extremely popular among medical professionals and can generate multiple sources of income.

Arranging the design of a property when renovating can see your property generate up to three times more monthly income than a simple buy to let.

Silent Investing

Silent investing is a risky yet highly profitable way of property investing. The beauty behind this method is its simplicity. You support another property investor who cannot raise the amount needed to purchase the property. The main investor pays for the costs of renovation and legal costs of resale.

Where do you make your profit? You make an investor fee upon sale of the property plus a little commission. The risk involved is based on the main investor and his ability to flip the property quickly.

Why Is Buying A Home Such A Fantastic Investment

If you have a sizeable amount of capital saved up, you have a number of choices on how to use it. You could, for instance, invest in the stock market. Some people are probably kicking themselves for not investing in companies like Disney just before they made industry shaking choices like the purchase of Lucas Film or Marvel. Alternatively, you could think about putting it in high-interest savings accounts. If you have a significant amount that you can invest each month, there’s a tremendous option that will let your money work for you. But we think that the best option is still to buy a piece of property. There are a number of reasons why this is the case.

Renting Is Dead Money

You’ve probably heard this before, but do you know what it really means? Basically, when you rent property, you will give money to a landlord. You don’t get anything from this in the long term. You only benefit in the short term by gaining permission to continue living in that particular location. When you buy property, you’ll still be paying money each month. But that money goes towards paying off the loan until eventually, you own the whole property yourself. This is what all buyers work towards as soon as they purchase their first home and once you own it you can profit it from it.

You can sell it on or even rent it out, it’s your choice and the money you make here is entirely profit. So, you could downsize and then put the money left over into another investment.

It’s An Investment Into The Future

While you can make money from your real estate investment, it’s also true to say that it can stay at exactly the same value and still provide fantastic benefits. Ultimately, when you buy a property and you pay off a loan, you will always have a place to live, no matter what happens. This can provide a certain level of stability for you and also your dependents when you eventually pass on.

It Grows

Yes, your investment when you buy a home can grow. It can grow without you making any changes at all. If the economy sees a boom, then the stock market rises and this will occur regardless of whether you choose to invest in that new kitchen or bathroom.

Of course, if you do invest in a kitchen, bathroom, or any other home improvement you can think of, then the value grows here as well. When you get the home valued, you’ll find that the way the cost changes is actually quite staggering. Indeed, it’s possible that something like a bathroom renovation could add about twenty thousand onto the value of the home. While you might think you need a fair level of DIY skill to pull this off, it’s just not the case. Furthermore, you don’t need an expensive budget either because even small changes can be enough to impact the value of the property.

We hope you see now why investing in property is a great choice.