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Property Investment: You Could Be Sitting On A Gold Mine

Well… that title might have been a bit misleading. It’s not that you could be sat on a gold mine, you will be sat on one if you play your cards right. Property investment is one of the most common investment options for people all over the world. So, why do you think that is? Well, for one, it’s just so easy to get the hang of. All you have to do is go through the property market, just like you did when you purchased your first home, and buy and sell properties. There’s of course the renting option, and the property flipping option, or even the property development option! All of which are viable, and all will make you a lovely sum of money. Due to their being just so many options with the routes you could go down, you’d have to do something seriously wrong to not be able to make money from a property investment. When you’re going to be playing with so much money, the last thing you’re going to want is for money to be wasted, so we’re going to try and help you through the process. You will be sitting on a gold mine with this investment option, and here’s how you can make that happen.

Start Out Right

So, this is the first area that people struggle with. If you want to invest in property the right way, you’re going to have to know what the right way is. First of all, you need to check yourself before you wreck yourself, and by that, we mean you seriously need to think about your finances and whether they’re going to take a beating. You shouldn’t be going into property investment with little money, hoping to turn it into big money. You should be going in with a fairly decent amount of money that you don’t mind losing a bit of, but with the view of growing your finances. As long as you’re comfortable with your money, then you should be good to go. But being good to go doesn’t mean you should be rushing into things. You should always get tons of advice before you do something like this. You could potentially throw away thousands, especially if you don’t have a clue what you’re doing. Talk to property investment advisors, financial advisors, and do plenty of Googling. Just make sure you’re reading articles from trusted sources, such as this one.

Different Methods

We touched lightly on the different methods of investment that there are. Your first option is investing by outright buying a property or two, selling it on when the time is right. You might make some small changes to it, or even rent it out for a short period of time. But the thing you need to watch for here is the market changing. You’re looking to sell to make a profit on the buying price, so you might have to sit tight. That’s why it’s best to try renting it out first, as long as you’re renting to reliable and trustworthy people! Renting out a home can ruin one, especially if you have people who treat it like a dump. We would recommend doing a quick flat inspection once a month, just to check the overall quality is in tact.

There’s also the option of buying a property to rent out long term. The advantage of this being that you don’t have to worry about reselling, and going through the hassle of making sure you make enough money from the sale. You do however, have to wait a longgg while for your investment to even get close to being level again. You’ll have a drip feed of money coming in each month, and that’s all. You should always try and make sure that the rent you’re charging is going to give you extra money. You want to overcharge to give you a profit in the long run, there’s no time for offering a cheaper deal to try and attract people. As long as you put the property on the market, there’s always going to be someone who needs to rent it.

The final choice you have is to look into property flipping. We think that this is going to be the best option, purely because it’s just so fun. You go out and find a property, usually through an auction. The property will have many things that it needs doing to it before it can be sold again. Think of it as a blank canvas. Now, the best thing about property flipping is that the house you buy is going to be really cheap, but doing it up might not be as expensive as you think. You might need to 10K+ on the renovation, but you’ll be able to sell it at +30k than what you bought it at. So in the end, you could be walking away with a 20k profit. Don’t get us wrong, it doesn’t always work that well, and you could find yourself making endless renovations to the home. However, if you do it right, and you pick a good property, there’s no reason why you can’t make a hell of a lot of money through this investment idea.

 

Holiday Properties

This is another method, but it’s one on its own. A holiday home is just opening doors to so many possibilities, and you could definitely be sitting on a gold mine with this one. Think about it, all people ever want to do is get away and see the world, and seeing the world from one of your properties could be something they can do. You would have to do it as the same process of buying a home here, and renting it out. If you check out links such as https://www.rumah.com/rumah/disewa, you’ll find some great properties available to buy, that you could then go on to rent out. Don’t get us wrong, you will go through some quiet times. During the winter for example, you’re obviously going to make less money than during the summer. But the summer is where you make all of your money, and if you put your price right, you can make a lot of it. The thing with holiday rentals is that people are trying to do it as cheap as possible, so they’re not going to want to overspend. However, they’re also desperate to get that perfect accommodation, so they’re going to pay the price if it means they get what they want. The best thing you can do is get all the information you can about renting prices in the local area, and make your property look as good as it can be. By good, we mean modern. That’s what people seem to love, so you might as well spend a little bit of cash making some small changes to the bathroom for example, and then offer a higher price for the payment for the holiday rental.

Building Your Fortune

This is the next step. Some people struggle to just stop at one. It somehow becomes an addiction, like gambling would. You’re spending a hell of a lot of money to try and make a hell of a lot, and when you actually do, the whole process becomes addictive. However, if you’re going to try and build your fortune, you need to do it slowly and steadily. As good as it is making so much money, you’re going to have to remember that it will become a little business. You’ll have so many aspects of it to manage, and it can often get a little complicated. So, do it house by house. Two houses shouldn’t be hard to manage, after two is when it starts to get a little complicated. It should be a slow process of buying and selling properties, or buying and renting, so take your time with it. The money you’ll make off just one home should be enough to keep you happy whilst you work on the next. It’s a slow building fortune that you need to have.

You Should Avoid These

There’s a downside to everything, and there definitely is when it comes to property flipping. For one, you should avoid going for a home that’s going to put you out of pocket due to the work it needs doing. We’re all for you finding yourself a fixer upper, but there’s only so much work you can do to a home. Some are so ruined, that you could spend thousands upon thousands on it, and you just wouldn’t get anything back. You also want to avoid properties in a nasty area, or one that’s far out from civilisation. It’s so much harder to sell, and the hassle that comes along with it is usually not worth it. You’re best off going in a more populated area to get that quick sale. Avoid any advisors trying to scam you with money as well. Some have bogus advice, but expect you to pay through the nose for it.