Pages Navigation Menu

Everything Personal Finance

Four Smart Things To Do If You Want Profitable Property Investments

No one invests in property just for the fun of it! In fact, they usually do it to make a profit, something that may be more elusive than you think. Luckily, there is a way you can increase the chances of your property investment being profitable. Just read on to find out more.

Do buy at the lowest price

It makes sense to buy your property at the lowest price if you want to make a decent profit when it comes to reselling it. However, where many people fall down is actually knowing how to do this.

Well, first of all, it’s crucial to remember that property prices are rarely ever set in stone. What this means is that there is nearly always some room for negotiation. Although sometimes you will need to offer an added incentive such as paying entirely in cash or being able to provide a quick turnaround.

Secondly, don’t forget that approaching your local estate agent isn’t necessarily the most cost-effective way to invest in property. Actually, you can get some fantastic deals by using property auctions instead. Services which offer properties for sale to the highest bidder, and where you can snatch some fabulous bargain if you are quick and bold.

Don’t decorate it as if you are going to live there

 

An oh so common mistake when it comes to property investment is when the purchaser’s go to renovate and decorate their new home in their own personal style!

Yes, you may have the most fabulous style ever, but this really doesn’t matter all that much when it comes to reselling or leasing a home. In fact, usually a basic and neutral look will work fine. Of course, decorating in this way is something that can save you a lot of money as well, so if you want to be profitable, it pays to keep things less elaborate.

Do consider all your options

Also, when it comes to making money from property, it’s essential that you consider all of your options. This means comparing the return on your investment that you would get if you resold the home, to the return you would earn if you rented it out.


Of course, you will need to factor things such as whether you paid for the property outright into this, as well as the time scale that you are looking for a return on your investment in as well.

An example of this being the investors that choose to lease their property on a monthly basis to cover the mortgage payments, and then cash in a larger amount when they resell later on down the line.

Don’t forget to be realistic about your timescales

Lastly, if its profit you are looking for when investing in property is pretty vital that you have a grasp of the timescales that are involved. This includes the time it takes to close on a purchase, as well as the timing involved in decoration and renovation. Otherwise, things can end up taking much longer and prevent you from making the quick profit you were hoping for.