After a long, long slump on the property market, things are starting to look up. Coinciding with the economic crash over the last seven years, things have been tough for property owners. House prices took a nose dive and some sellers couldn’t even find buyers for their homes. In the ‘90s and early 2000s, it was possible to make a lot of money on the property market. Despite a major dip, we’re heading back in that direction.
In some of the world’s biggest cities, homeowners are reporting huge valuation increases. House prices are back on the rise and that’s good news for property entrepreneurs. Now is the perfect time to get on the ladder and make a killing on the property market. If you’re not sure how to do so, today’s post will show you the basic routes. There is no one single method for success. Instead, there are many, each with their own benefits. Let’s take a look.
Renting your property
Renting out your home has long been the method of choice for property gurus. Get the location right and you’ve got a guaranteed income all year round. There are plenty of costs involved including maintenance, landlord insurance and management fees. However, get it right and you’ll draw in big enough profit to cover these costs. Like most property investments, this approach relies heavily on knowledge of the local area. Take your time to get the location right and do your research.
If you love getting stuck into manual work, you could consider the ‘refurb and flip’ technique. You’ll start by investing in a property that needs a little work. Over a period of two or three months, you’ll make alterations and additions to bump up its value. Finally, you’ll sell it on for a profit. There is a quite an art to this approach and you need to make big value additions to make this work. There are a lot of fees and taxes involved with buying and selling. You’ll have to increase the value way above these costs to make a profit.
Playing the market
Much like the stock market, the property market rises and falls at different times. Savvy investors can take advantages of these peaks and troughs. For instance, you can buy when prices are low and sell when prices are high. You can be much smarter than this, however. You can use locations to make money too. Look to buy in locations that are likely to boom in price. Once they reach critical mass, look to sell the property on. If you do follow this path, try to avoid the big real estate mistakes!
Playing the long game
This is the safest and most assured tactic when it comes to property investment. In general, the property market rises over time. These are occasional dips and bumps, like the last five years or so, but on the whole, it rises. If you can get on the property ladder, your home will rise in price over time. Play the long game and you’ll land a secure profit in the future.
Whichever route you take, there is plenty of money to be made. Follow these steps and you’ll soon make a killing on the property market!