Is Property Investment Still a Good Way to Make Money?

Published on: 24 April 2018 Last Updated on: 09 October 2020
Property Investment

With the recent changes in regards to the amount of tax that landlords pay, it has led to many people questioning whether property investment is still profitable. There is not a simple yes or no answer to that question, as all situations are different. For example, buying a single second property with a high mortgage rate is unlikely to be a big earner. And you need to think about whether property values are going to drop, as you could actually end up worse off.

However, there are plenty of property investment strategies that do still work and that people are making good money out of. One such strategy is buying houses at auctions for below the market value and then refurbishing them and selling them on at a profit. Now if you have never been to a property auction before then you will need to learn the set up in terms of house bidding. But experienced property investors use auctions as a huge opportunity to make money.

Refurbishing :

Some investors have a strategy of ‘flipping’ a property whereby they buy the property at a low price and then they do some pretty basic repairs to make the property a more attractive option for people looking to buy a house. They work with tradesmen that they have good working relationships with and therefore can get a lot of the work done at cheaper rates than your average house buyer would be able to.

The refurbishment might involve just putting a cheap carpet down and giving the rooms a fresh coat of paint. The work doesn’t have to cost much when investors know what they are doing and how to make a property look more attractive as a potential home.

HMOs (House in Multiple Occupation)

HMOs (House in Multiple Occupation)

 

Another popular strategy for property investors is buying a large property that they can turn into an HMO (house in multiple occupations). Here they will find a larger property on the market and assess whether it is suitable for turning into a shared property, incorporating the necessary construction work to adapt the property to create numerous living spaces.

There is quite a lot of work involved in this type of property strategy and it isn’t something you would easily take on as your first property investment project. You need to know the legalities involved and you need to be able to identify an area that is going to be suitable for this kind of venture. Understanding the area and the demand for rental property is a key dependency on this being a successful investment strategy.

Before you think about moving into property investment, it is definitely worth doing a whole lot of research before you put any money into it. There are so many people out there that rushed into property investment, thinking that they could easily buy a house cheaper than market value and do it up before quickly selling on. Then the housing market crashed and they ended up being left with a house that they could not sell or had to sell at a loss. So do your research about the market, about the area of the property that you are looking at, learn about all of the legal requirements that play into the investment opportunity. Factor in the financials like interest rates and tax.

You also want to be doing some groundwork in regards to finding tradesmen that will be a key part of making money through property refurbishments. When you have done all of that, you can think about whether or not you are in the position to make money through property investment.

Read  Also :

Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

View all posts

Leave a Reply

Your email address will not be published. Required fields are marked *

Related

Tiger Containers

How To Use A Shipping Container As A Home Office

Shipping container offices have given many a quick, long-term, and Eco-friendly approach to making an office space. Today, a lot of people are looking to used containers for their small office needs because they are very affordable, convenient, and already an established setting that can be easily constructed from within. Its popularity comes from their simplistic making of ordering, being delivered to the location, and building right on site. Plus, it doesn’t take long to construct the interior of a container. These steel shipping containers are made to be standard, durable in all settings, and easy to move around. Buyers have to prepare for everything and you want to set it up by the time the shipping container arrives. This involves preparing the doors and windows, insulation, utilities, and flooring. Get a ballpark amount of how much it would cost per square foot;  the floor plan and where every little thing should be drawn up, plus plumbing and electrical areas. Making a shipping container into an office requires you to be detailed in your small room because you are making it simple. There are major considerations in this small space; think of the phrase, “Less is more.” You don’t have a lot of room, so don’t get fancy with the furniture and computers. For any office to be workable, you need proper heating, ventilation, and air conditioning. Installing that is a major difference from what the shipping container has because it is built to be airtight in moving goods around. Now, you need to install a perfect unit that can control the temperature inside. For a large container, air ducts can be installed if the container is split up.Air ducts let the air go from one end to the other. Rooftop turbine vents and ceiling exhaust fans can also be installed. These are inexpensive and don’t require a lot of power to keep on running. Then, there is the presentation of your office from the outside where it should not come off as run down and cheap just because you are in a container. The paint job all over prevents the rust from showing. The container needs to be washed to rid of any markings and the more visible rust smoothed out before painting. It has to be as if the container was built as new. The aesthetics are important because it is en vogue for an appealing, younger sector of people who are trying their own business. You have to use your shipper container office like any other room. Home office building can provide the most money and time being saved. There is a lot to think of in creating your new home office. This is still a new trend and there will be skeptics, but the total cost of the entire project is quite easily comparable to a traditional construction in that the shipping container is the way to go. Source: Tiger Containers

READ MOREDetails
Granny Flat

Here’s Why You Should Have A Granny Flat

A Granny flat has been gaining more and more popularity as homeowners turn their attention to this convenient piece of property. Especially populous in Australia, a granny flat is also known as an “in-law apartment”.But first of all, let us get familiar with what a granny flat truly is. A granny flat is a dependent personal unit located inside a house with, usually a single-dwelling, family. In easier words, additional spaces of your home used up to make a dwelling for one or a maximum of two persons is called a granny flat. It can also be defined as an accessory dwelling unit alongside a house. A granny flat is mostly used for an elderly or aging parent, hence the name. A granny flat is ideal for any aging parent, a granny, a young adult, a guest, etc. Where can I build a granny flat? There is no specific rule for the location of a granny flat. You can build a granny flat by converting your garage, building a granny flat in front of your main unit, on the lawn, or building it in your basement. You can be creative, utilize that extra space sitting in your home! Why should I consider building a granny flat? Nowadays, you will see granny flats in every other house. What is the reason for its popularity? Well, they are popular because they are very advantageous. Here’s a small overview of the perks provided by a granny flat. 1. Extra income A granny flat, if rented, can bring an additional income to the house. Granny flats are high in demand by single individuals so you will easily find a tenant. 2. Portable Most in-law flats are portable. Meaning, if you wish to change your house, you can simply take your granny flat with you. Granny flats in Melbourne caught the attention of people for this exact reason. 3. Utilizes extra space That big lawn is just sitting idle. Why not use that extra space for your benefit? Not only will you be utilizing your space stylishly, but you are also bringing additional income to your home through tenants. 4. Keep your loved ones close It is difficult to keep your aging parents away from you in a time when they are so fragile. A granny flat accommodates your aging parents by keeping them close. 5. Privacy Privacy is a significant factor for every person. A granny flat keeps your loved ones close in a way that both of you have privacy as well. What better than being close to family and also having personal space? 6. Increases house value A major advantage of a granny flat is that it increases house worth. An additional living unit is part of the house you own. Hence, the resale value of your home increases significantly. One thing you must consider before building a granny flat is to check with city zoning regulations to go through the conditions and rules for building a separate living unit. Building a granny flat from scratch has more restrictions, rules, and regulations. Therefore, most people prefer converting their garages into granny flats to avoid the barriers of zoning laws and building restrictions. Read Also: What To Look For When Renting A Property In St Albans: Checklist & Advice Property Investment Success Stories Real Estate 101 – 3 Simple Tips to Boost the Value of Your Property

READ MOREDetails
Real estate

DC Metro Area Real Estate Update

Real estate in the nation's capital is enjoying a banner year, according to all indications, and expectations are that the good times will continue -- at least for sellers. It's not only the city but the entire metropolitan area, including sought-after Maryland and Virginia communities, that are currently experiencing fast sales and rising prices. Combine that with near record-low inventories, and it is a classic seller's market. The picture is not quite as rosy for buyers, however. Sales are brisk, averaging well over 8,000 homes closed during the last several 30-day periods. Nearly 9,000 homes were sold during June, and week over week sales increased 3.5 percent, according to the July 8 Homesnap report. Close-in Fairfax County, in Virginia, is a consistently high performer, even beating its own week-over-week record on a regular basis. In June, there was some concern that the market was showing signs of weakening after a strong start to 2017. And, to be fair, sales numbers were down slightly for a week in June, but have since rebounded. Inventory is down to a two-month supply, and median sales price for the area continued a 12-week upward trend. Overall Figures Reflect Strength While market conditions vary by specific locale and by housing type, the median list price for all homes currently on the market is $450,000, up from $439,000 one year ago, but lower by 2% than one month ago. The median price has trended upward, though, since January 2017, which marked the low point since July 2016. Among active listings, average time on market is 131 days, and there are nearly as many new listings as there are price reductions. New listings are lower than previously by nearly 10 percent, and the number of reduced price listings is down 2.7%. The median list price of detached homes is $545,000, with average days on the market only at 96. Townhome and condo sales and prices are equally strong: $390,000 and 58 DOM; and $320,000 with a DOM of 63, respectively. The Investment Picture In the Washington, D.C., metropolitan area, as in many other parts of the country, it is the Millennial generation and Baby Boomers who are the driving forces in the real estate market. Although the reasons are quite different, the two age groups exhibit many of the same preferences. They tend to prefer locations near the urban core, although close-in suburban communities are finding new favor with young working singles as well as families. Empty nesters and soon-to-be-retired couples are, in many cases, downsizing by trading their suburban homes for an in-town apartment, condos, and townhomes in order to be near cultural amenities, shopping, restaurants, and nightlife, as well as to maintain former business ties. Spending on remodeling and improvements to sell is forecast to have a major impact on the economy during the second half of the year. When the available housing supply dwindles, a high percentage of buyers, young and old alike, decide to remodel rather than wait for the "perfect" home or take a chance of being priced out of the market. Based on a report from Harvard University's Joint Center for Housing Studies, senior homeowners, those aged 65 or older, will be responsible for one-third of total remodel dollars spent in the nation by the year 2025. In addition, total expenditures by all age groups are expected to rise by at least $48 billion over 2015 spending. The lesson to be learned? In a tight housing market, if you can't easily find the perfect home, simply remodel what you find to be acceptable. If current trends continue in the DC metropolitan area, home improvement may become the new normal. Read More :  Top Expert Tips For A Stunning Condo Interior! We Buy Houses: Don’t Build Without Permits

READ MOREDetails