Is Property Investment Still a Good Way to Make Money?

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

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)

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.

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6 Crucial Components For Solar Power Installation In Your Home

If you're considering installing solar panels on your house, you're not alone. In recent years, solar power has become an increasingly popular alternative energy source. The good news is that you can install them yourself. The bad news is that it can be a complicated process, and you need to make sure you get it right. You need to gather information, read some reviews and start planning your solar energy transformation. The sooner you do that, the sooner you will be able to enjoy the benefits of solar power. Checkout Six Prime Components for Solar Power Installation In Your Home: Here are five of the most important components you'll need to install solar panels on your house. 1. Solar panels Solar power is not just an energy source that is changing the world. It is also changing the way people think about energy. People are becoming more aware of the fact that renewable energy comes free, right from the sun. In fact, the sun is a better option for us than fossil fuels or other sources of energy. That's why solar panels are becoming increasingly popular as an alternative energy source. In the past, solar panels were prohibitively expensive, and it took a lot of effort to make them work. But now, with cheap solar panels, the cost has come down remarkably. All you have to do is set up solar panels in your home, and you will have a steady supply of electricity 24 hours a day. With the right setup and the right amount of solar panels, they can be used to power your home or business. They are also used in water heating and heating systems. 2. Charge controller A charge controller is the heart of a solar power system. It is the one that decides when to charge the battery and when to disconnect based on the battery's state of charge. It is the one that has to be compatible with the battery, the solar panel and the load (inverter). It is the one that makes the entire system work smoothly and efficiently. A charge controller regulates the flow of electricity from your solar panels to your batteries. Charge controllers are usually built with microcontrollers and are very precise. The charge controller tells your batteries when to accept a charge and when to stop charging to prevent overcharging. Charge controllers are also called solar controllers. Charge controllers have a few different settings that you should know about. When one of these settings is misconfigured, it can cause your batteries to overcharge, which can shorten their lifespan. 3. A battery Solar power is clean, green, renewable and abundant, but for it to do you any good, you have to save it for when you really need it. That's where batteries come in. A battery for solar power installation is an energy storage system that allows you to store solar energy from your solar panels for use at night or on cloudy days. As a homeowner, you have two options for storing solar energy: you can store it in batteries, or you can store it in your water heater. Either way, you'll have the option to draw on your solar power supply when you need it most. 4. Inverter As a homeowner, you have the option of installing solar systems in your home. This can be a great investment and an excellent way to lower your monthly electricity bills. However, you will need to decide which type of solar power installation you prefer. You can choose to have Solar Photovoltaic (PV) system or a Solar Thermal system. Either way, you will need to buy an inverter for solar power installation. An inverter is an electrical device that is used to convert direct current (DC) from solar panels into alternating current (AC) so that it can be used in your home. So, before you decide which solar system you want, you should decide whether you want to use solar panels to generate direct current (DC) or alternating current (AC). 5. MC4 connector Solar power installation requires MC4 connectors. MC4 connectors are designed for high-temperature, high-voltage and high-current applications. When installing solar panels, you will need to install solar MC4 connectors for connecting the solar panels to the charge controller. Purchase high-quality MC4 Connectors - PV Connections for solar power installation to prevent damage to the solar panels. The MC4 connectors are connected in series so that each solar panel can produce power. It is very simple to find MC4 connectors on the internet. 6. Breaker and meter A solar panel is an electrical device that converts light from the sun into electricity. The amount of energy that a solar panel can produce depends on the panel's area, the solar cells' efficiency, the angle at which they are facing, and the amount of light they are exposed to. A solar panel produces direct current (DC) electricity. A solar panel connects to a solar inverter, which connects to a battery, which connects to a breaker. A breaker is a switch made up of a switch, a fuse, and a circuit breaker. A breaker is often found in homes with solar panels or wind turbines. By using a breaker, you can control how much power is being used by the appliances and what appliances are using power. The circuit breaker stops the flow of electricity if something goes wrong. A meter is essential because, at the end of the day, you want to know how much electricity you use from the sun and how much you use from the power company. Read Also: Is Energy A Good Career Path? – A Detailed GuideBest Paying Jobs In EnergyEverything You Need To Know About Mobile Solar Generators

Secrets to Choosing the Perfect Second Home & Make Money Out of It

Do you own a house, and are you considering buying another one? The purchase of a second home is usually decided to enjoy a rest or family vacation. Having a second home is a dream that many families want to have, and the summer can be an ideal time to choose that desired home. A second house offers the possibility of unique moments, especially in summer. These are the benefits of buying a house for a vacation or another household. But before decision, do the following: Think About your Goals You may want a holiday home that you can visit during the holidays. Alternatively, maybe after your retirement, you might want to lay back and enjoy your retirement years. This can also be a vacation home, which you can leave for your children after you pass away. If you are looking for tax deductions as an incentive for buying your second house, you are doing it right. However, a lot of it boils down to how you are going to use the second home. There are differences in insurance coverage when it comes to a second home. A vacation home cannot be brought like an investment that will generate income. The difference can run into thousands of dollars. So, before you purchase a second house, you must settle this debate. Thoroughly go Through the Actual Figures and Numbers To begin with, you need to consider the mortgage factor. You really need to decide whether you want to invest your life’s savings as a down payment. You also need to plan on where the second mortgage might come from. If you are sorted on the above two fronts, you need to start considering other avenues of additional expenditure that you might incur for your second home. These might include issues like- Taxes on Property. Insurance of the house. House Maintenance Annual Charges. Redesign and repair. Furniture and fees for property management. What will your tax depend on what kind of property you are planning to buy? Before you do anything, it would be wise to seek an expert opinion from a tax professional. He will be able to give you the complete picture of any financial expenditures you might be facing in the future. You might also be interested in knowing whether you will get tax breaks or interest deductions on your new home. Establish a Budget Establishing a budget for the purchase of a second home is important because it will be key when calculating the mortgage fee. The budget should include the initial expenses of buying a house. Choose several areas to track to find your second home. It is important to be clear about what use will be given to the Property and, depending on that, choose the area. Do not focus only on one geographical location; consider several options and make sure you have the necessary services for the purpose of buying the house. The distance will be important since you will always be able to use your second home whenever you feel like it. Know your Mortgage Options A bigger chunk of the payment is made at the down payment stage, which ensures fewer monthly installments. This, in turn, will make your borrowing from the bank of a lesser denomination. However, there is a huge difference in the interest rates of loans for primary residences and households deemed vacation homes. One expert you should see is a Loan Officer. This professional is the best person to aid and advise you on your requirements. He will also be the best person to tell you about the qualifications required for the loan processing stage. The typical procedure involves the loan officer appraising your current economic status and suggesting which loan packages will suit you the best. He will also look at your proposed dream home before making the suggestion. If you apply for a loan at a bank where you are already a customer, you might receive some additional benefits. The process itself might become easier, as the bank would already be aware of your economic and financial holdings and advise you accordingly. Beware of Fashionable Places Every so often, a city becomes a fashionable holiday destination. Be careful with fashionable places among most of the population because they are usually much more expensive and travel to them is complicated. There are traffic jams to go and to return, queues in the supermarkets, shops, and other businesses, and 100% occupation. There are some problems arising from going to summer to the best destination. Renting it Out for Extra Income Many people justify buying a second home by renting it out when they're not using it. It can be a good way to cover some expenses, especially in popular vacation spots. However, it is important to do your homework before diving into this. Some areas have strict regulations regarding short-term rentals. You should also consider the additional management that comes with renting—a property manager, cleaning fees, and handling guest complaints. Plus, there’s always wear and tear to think about. But if you play it right, renting could be a significant source of passive income. Just weigh the potential profits against the extra work and possible stress. However, remember, dealing with tenants can be challenging sometimes. However, you will have that extra. Do you want to deal with tenants on your summer weekends? Understand the Local Market Before buying, take a deep dive into the local real estate market. Is it a buyer’s or a seller’s market? What’s the long-term growth forecast? These are essential questions because a second home can be a personal retreat, but it’s still an investment. The value of that investment depends heavily on the health of the local market. Talking to local real estate agents who understand the area's nuances is key. They can offer insights into future developments, community trends, and potential shifts in property values. Even things like upcoming infrastructure projects can greatly impact your decision. Think Long-Term It’s easy to get swept up in the excitement of owning a second home, but it’s wise to think long-term. Your needs today might not be the same in five or ten years. Consider how flexible the property is. Can it accommodate changes in your life, like starting a family or changing your mobility needs as you age? Also, consider the costs you might face down the road. Roof replacements, plumbing upgrades, and other big-ticket maintenance items will eventually appear. Planning for those expenses from the beginning can save a lot of stress. Be Ready for Unexpected Challenges Owning a second home isn’t all sunshine and beach days. Unexpected issues will arise. Things like broken pipes, pests, or dealing with snow removal if it’s in a colder climate. So, when these problems come up, you’re not always nearby to deal with them immediately. That’s why having a trusted local contact is important, someone who can check on the property regularly and handle emergencies. People often overlook these hidden headaches when dreaming about a second home. Be prepared for the unexpected, and it’ll save you a lot of frustration. Final Thought: If you are planning to purchase a second house, please be rest assured that it will be a huge life-changing decision for you and your family. However, if you play your cards right, you might just be able to have the most comfortable retirement holiday home. This is where experts can help you make an informed and well-calculated decision. Read Also: 4 Tips For A Successful Home Renovation Things To Know Before Buying A New House A Quick Guide To The Legal Steps Of Buying A House Reasons To Stay In A Vacation Home Rather Than A Hotel Buying A House Vs Renting An Apartment: Which Is More Affordable?

Tips When Hiring a Concrete Driveway Contractor in California

Hiring the right concrete driveway contractors in San Diego or concrete driveway contractors in Los Angeles is an important process in ensuring quality results you have desired for your home or business driveways. Improving your residential or commercial driveway areas comes with several benefits, but projects as such should be done by a professional concrete contractor in California. Driveways are the first area of your property that your visitors notice. It is essential to make sure this area is aesthetically pleasing with the help of a professional and trusted concrete driveway contractor. Improving concrete driveways has been a popular choice over the years because it offers an elegant and durable finish. There is also a wide range of colors and styles to choose from, which makes it worth the investment. If your goal is to have a driveway that would be aesthetically pleasing and last for many years to come choosing to use concrete would be a great option. To achieve your desired design finishes for your driveway, you have to make sure you are working with a professional and experienced concrete contractor. However, with so many concrete companies out there, how could you possibly find the right one? Here are five tips to help you make the right decision in choosing the best concrete driveway contractor in California: 1. Do your Research To have some perspective contractors hire, you have to do some research and learn more about the concrete services they provide. You can do your research through the internet to easily find the best concrete contractors in your area. Most concrete companies these days offer a free estimate, this is an opportunity for you to ask them questions regarding your driveway project to better access their knowledge and abilities. Before asking any questions, it is important to know what you are looking for in a concrete company including their contractors. You can also ask your friends and family for referrals or ask your local concrete suppliers if they can recommend someone in your area. In this way, you’ll be able to ask them about the work they have done and their experience they had with a concrete contractor. Doing your research allows you to better understand the steps and processes, including the proper preparation of the area and the variety of options available to you. You’ll be able to compare your list of choices that would help you find the best concrete driveway contractor in your area. 2. Consider their Years of Experience Mixing, pouring, and laying down concrete may sound as simple as that, but in reality, this type of job is tricky. Any mistakes can’t be easily fixed, unlike other flooring materials, the job needs precision, and that can be achieved with years of experience. While finding the right concrete contractor, you need to make sure that the contractor has spent years in the industry to give you a guarantee that you’ll receive quality finishes for your driveway. Choose a contractor who has at least five years of experience in the concrete industry, ask them if they have done concrete driveway projects in the past. Asking them suggestions and tips for your concrete driveways project would also help in gauging if they are knowledgeable and skilled in that particular area. When a contractor gives you helpful answers and viable examples, it only means that they are knowledgeable and experienced in the concrete industry. Related: What Independent Contractors Need to Know about Workers Compensation 3. Ask for a Contact Reference As you interact more with your contractor, ask them to give a contact reference to verify their work, process, and how they operate. Ask their contact reference questions such as the type of project they did with them, the span of time they have completed the project, their involvement and communication, and how happy they are with the results. Their answers to your questions would help you decide which contractor to hire for your concrete driveway project. 4. Ask About the Company’s Insurance & Permits The concrete company’s insurance gives you peace of mind over a possibility that something might go wrong during the process. You will not be held liable if in case an accident happened. It is important to verify if the concrete company is insured. You can call their insurance company to know its coverage. Ask your contractor if a permit is necessary before starting the process, obtaining a special permit depends on several factors, including location and the type of project. A professional and experienced contractor knows every process, including all the necessary paper works, hire someone who gives the right answers since day one. 5. Gauge the way they interact During your consultation with your contractor, observe how they interact or assist you with everything you need. Good interaction with your contractor and with the concrete company plays an important role in the whole process. Hire someone that accommodates you well and makes sure to respond to your questions promptly. If the concrete contractor does the opposite, it’s time to consider other contractors in your lists. Read Also: Roofing Painting Contractor Leads: Ask Before Hiring One Fix Your Home up This Summer With These Core Hacks

Is Property Investment Still a Good Way to Make Money?

Refurbishing :

HMOs (House in Multiple Occupation)

7 Reasons To Buy A Condo Over A House

Ideas to Help Find Your Dream House On a Budget

Content Rally

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.

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Is Property Investment Still a Good Way to Make Money?

Refurbishing :

HMOs (House in Multiple Occupation)

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7 Reasons To Buy A Condo Over A House

Ideas to Help Find Your Dream House On a Budget

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.

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Popular

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