Investing in property, is and always has been seen as a safe and sure fire way to grow your capital, often out performing many other types of investment such as gold. There are a number of different ways in which you can go about doing it and so here we offer advice for making money through real estate.
Become a Landlord
One of the oldest methods of making money from bricks and mortar is to become a landlord. Doing so means getting a regular monthly payment from the property’s tenants and this, or at least a percentage of it, can be then invested elsewhere. Many landlords build up a portfolio of properties and in theory, the more properties you have the more money you stand to make.
The potential problems of being a landlord include the maintenance and management of the properties. Also, there can be legal and financial factors, however using an expert law firm such as DWF can help you navigate these and acts to save you money in the long run.
Renovating a Property
Renovating a property and then quickly selling it on for a profit has increased greatly in popularity over the last 20 years. The main reason for this is that, done well, there is a great deal of money to be made.
Key the success of such a project is finding the right property to take on. A dilapidated property that, as a result is selling for a price significantly lower than similar houses in the same area is what to look out for. Once you have secured the property, then the renovation work needs to be done quickly and to budget before the most important part of the project can be addressed – selling for a profit.
Investing in a Property Development Company
If you are the type of person who doesn’t like to get their hands dirty, then investing in a property development company may be the key to making money through real estate. This can be done in two ways, first you could invest via the stock market, in a company that is publicly listed and who you think are in a position to grow.
The second way is to approach a smaller company and ask if they are looking for private investors. Either option involves assessing whether or not, in the future, the company’s profits will grow and therefore pay you a dividend on your investment.
Approached in a measured and sensible fashion real estate will always help you build your capital and make money.