Many people, once settled into a successful career, find themselves with more saved money and opportunities to invest than they may have expected. It can be tempting to play the stock market, dabble in currency exchange, or just pile it up in a savings account for peace of mind, but there are other more interesting options. Especially if you're handy at repairs and like people, investing in property could be one of the most enjoyable and lucrative decisions you can make. Because there are so many kinds of property and ways it can be used, the opportunities for making a profit are vast. The potential for each individual lot is based on practical usage and your ability to make use of it. In many cases, especially renovation, your returns can also be influenced by your creativity. If you're considering buying an investment property, here are four great ways your property could make money:
Property Flipping is the term applied to buying an imperfect property at a low cost, renovating it, and selling it at a much higher value. If you are great at construction or already have a trusted and affordable contractor, flipping can be an excellent way to make fast and lucrative profits from each property flipped. Creativity can play a huge part here, as the ability to transform 'unattractive' buildings can add tens to hundreds of thousands of dollars to the final sale price. One popular renovation opportunity comes in the form of sturdy old barns, often turned into elegant homes with modern architecture and loft space.
If you don't plan on flipping right away (it's always an option), renting out the space is a great way to open up a monthly income stream. This is a fun solution for very social people who look forward to dealing with tenants, but remember that being a landlord comes with its own category of responsibilities and kinds of insurance you want to have. Renting also means the building will be facing normal wear-and-tear, so be ready to fulfill repair requests and deal with the occasional emergency. If you're handy with a wrench and are comfortable handling people, renting could be your ideal long term property investment, and could easily be an enjoyable way to spend your retirement.
3. Listing On Airbnb
The sharing economy is a new and fantastic way to 'rent out' an investment property. Airbnb allows you to list a property online and let people book time there as if it were a hotel room. Offerings range from spare rooms in people's homes to complete homes that, instead of renting, they are booking to vacationing families for times ranging from a few days to a few months. If your space is beautiful and you clean and restock between guests, it can quickly become a constantly booked hotspot and make more per month than you would charging a reasonable rent to regular tenants. wonderful touch.
4. Stable Equity
Property is a great way to invest in something solid and long-term. No matter what the housing market does, a house or office building has a certain amount of inherent value, and every repair and improvement you make increases that. While most investment property strategies focus on relatively fast or continuous returns, there are also special legal circumstances where a property is more valuable than liquid cash. Whether you rent commercial office space, residential housing, or book with Airbnb, the property remains with you as a physical savings account. You can use it as collateral for large business loans, set it up as part of a family trust, and/or save it as a special gift to your loved ones in your will.
The opportunities for investment property are as varied as the properties themselves. In a single building, you might be able to open a small grocery store and rent out several apartments, or renovate an old firehouse into a museum and gift shop. It all depends on your abilities, creativity, and choice of property. Here are some final parting tips: If you choose to invest, do so wisely. Choose a property you'll enjoy owning and a method you understand, will enjoy, and can maintain. Finally, always get an inspection and appraisal before finalizing a purchase.
"The wise young man or wage earner of today invests his money in real estate.” - Andrew Carnegie. Considering getting started?