As a licesened realtor I understand the potential for making money in real estate. Property has long been a popular investment option for those people looking to put some of their savings somewhere other than a bank. After all, people are always going to need somewhere to live and property can give you a great return on your investment, year after year.
It’s not only the super-rich who invest in property. Many people start with a single purchase which brings in some extra money to put towards the family budget and others build up properties in order to eventually make it their main source of income. A diverse property portfolio of different types of property will make your investment more resilient to the ups and downs of the economy and the property market.
There are lots of different investment opportunities in property that could be suitable for you. Let’s take a look at some of the most popular options.
When apartment buildings come up for sale, they can often represent a significant discount on buying the units individually. Having ownership of the entire building means that you can bring them all up to standard with apartment intercoms and interior decoration. You’ll also have control of the communal areas in the building too. If a complete building isn’t for sale, then you can always play the long game and purchase different units as and when they become available.
While an entire building is a more expensive outlay, the opportunity to make money from multiple rented units is huge.
Most people start off with investing in a single property, which they either rent out to private tenants or flip for a profit, using those profits for their next purchase. If you choose wisely, a single property can give you a good return, allowing you to put that money towards buying a second property and onwards to build up a portfolio.
If you live in an area with colleges and universities, then being a landlord to students can be very lucrative. After their freshman year, many students decide to move into houses and apartments with their friends. You can look to rent out a property by the room, meaning you’ll maximise that return that you get in rent.
There are more rules around renting to students. You’ll also need to check your home and landlord’s insurance to make sure that it isn’t invalidated, but there are special insurance products on the market, especially for these types of rentals.
If your property is near a college, then you’re never going to have trouble finding renters as there will be a new batch of students every year seeking quality accommodation.
It’s not just people that need property. Businesses do too, and they pay a lot more for it than a standard residential rental. So rather than looking for residential opportunities, take a look at the commercial property market too. The range of the property you could buy could be anything from a traditional office unit, to a factory space.
Do some research into what types of businesses are in your area and what needs aren’t currently being catered for. This will help guide you to the type of commercial property that will bring about the biggest return on investment.
Some of the highest rental rates around are on vacation properties. You can rent these out for more per week than you would a longer terms tenancy per month. Buying in a popular vacation spot will mean that you can charge premium rates during the peak season to offset some of the quieter months. You can choose to rent out your property independently or use a management agency to take care of this for you. Owning vacation property also has the added bonus of allowing you, your family and friends to enjoy it too. There are also a number of other options such as using Airbnb or a similar platform to help you rent it out.
Investing in property isn’t without its risks, but it has become a very popular way for people to invest their money. In today’s economy, rents for good property in popular areas are very high, meaning that you could be making a great return on your investment over the medium to long term.
If this is something that you are interested in doing, then you should take advice from a qualified financial expert and also seek the support of an experienced real estate agent too. They will be able to help you realise your dream of property investment.
Have you ever flipped a house to make some extra cash or used the equity in your own home to finance purchasing or building th home of your dreams? I love hearing from you!
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