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Many people see the latest makeover shows and property auction documentaries on the TV and assume that making money from property is ridiculously easy. They’d be wrong. In the current climate, you can no longer buy a property at auction, do nothing to it for a year and then sell it on at a twenty per cent profit. Property is still a safe investment but it is in no way as lucrative as it once was. Property is as safe as houses, but you need to be in it for the longer term if you are to make any real cash from your dabbling in the market.
Property is a great way to invest your cash because you are guaranteed to make more money being proactive with your savings rather than leaving it in a bank account. You could choose to invest in property in a number of different ways. Each way has its own risks and could see you being a silent partner or taking a more hands-on approach. Read on to find out which form of property investment is right for you.
Renting To Young Professionals
If you live near a city center, you might be keen to tap the young professionals market. These individuals are usually young, free and single, have little or no real life responsibilities yet and they earn a decent wage. This means that they have the cash to spend on rent. They can be a safer tenant as they have fewer CCJs, they probably have better credit ratings, and they will have references from past landlords for peace of mind.
Young professionals want a certain calibre of property. You might choose a central location full of apartment complexes. Or perhaps a house share is more up your street. If you fancy renting to young professionals, you need to make sure that your property has great transport links and has decent fixtures and fittings. For the lower end of the market, you could make do with magnolia walls and a clean and functional home. Young professionals want a little bit extra and will pay for the privilege in their rent. Granite worktops for the kitchen could boost the appeal of your pad, as could a networked WiFi system across the pad.
Having more disposable income means they are willing to spend their money on the property that they are residing in. Some may want a fully furnished place to rest their weary bones at night, so make this an option when you come to list your property.
If you live near a tourist hotspot, you could try to tap the lucrative vacation let market. You might live near a mountain in which case a chalet could be ideal to let out to large groups or families during the ski season. If you leave on the beach or close by, you could let out a condo with an ocean view. Or if you live near some beautiful countryside walks, you could let out a quaint little romantic bolthole of a cottage. Being very short term lets, these properties need to be well looked after in between. That means venturing in and cleaning them so they look brand new for each new holidaymaker.
People tend to be fussy on their holidays and want high-quality accommodation. During peak season you could achieve four figures in profit every month. The upkeep is tougher and the property purchase price would be higher than a flat in the city centre but it could be worth it. In the low season, you could have a readymade holiday retreat for your brood. Ensure that you adhere to all legalities, otherwise you may need the advice of civil law solicitors should you end up in a dispute with the person you have let out your chalet to.
To market your property, you need to utilize the power of the internet. Airbnb and other rental websites that focus on short term lets are perfect platforms to show off your pad. Put up as many photos as you are allowed showing off the interior, the decor, the outside space and the facade. Give any potential holidaymaker some information about the local area and suggest some activities they might like to do when staying at your abode. The key aspect of sites like Airbnb is the review section. Every person who stays at your dwelling will have the opportunity to review their stay. You must make sure that you achieve the highest ratings possible. Noisy neighbours, being above a nightclub or a lack of hot water will make for a poor vacation experience. If any dispute arises, try to sort it out immediately.
Off Plan Investments
Some people choose to forgo the whole concept of being a landlord for a much more simple form of investment. Buying off plan is seen as risky by many. However, purchase the right property before it has even been built and you can sell on at a profit once the building regulations have been signed off. Properties overseas in up and coming hotspots like Dubai and Singapore are becoming more and more popular for the foreign investor. Building companies sell units off plan to fund the build and then hand over the keys once complete.
While you won’t have much input to the build and you may not ever set foot into the pad, you could be sat on a potential goldmine. You will have to be careful with the investment you choose. Ensure that the builder has a sound reputation and that they have experience in building complexes and apartment blocks. Go by word of mouth recommendations rather than by clicking on a dodgy looking pop up on social media. This is where scams occur so steer clear.
Buying off plan could see you with a brand new home that has already got a top spec interior that you did not have to achieve yourself. Sell on once complete and you have turned a quick and healthy profit.
Investing in property is not as lucrative as it once was. However, bricks and mortar are still safe bets if you have some cash that you need to invest in a side hustle.