Everyone wants to maximize their income. With the emergence of online entrepreneurs, crafters, and artisan trades, more people than ever are choosing to take control of their financial destiny. Whereas it used to be the case that you’d be in a job for life, and retire with a decent pension, things are not so certain anymore. This is why people are choosing to make the money that they do earn from their nine to five work in a more lucrative way for them. Forget allowing your savings to languish in a savings account and instead be more proactive. Property is seen as a fantastic investment for the amateur entrepreneur. Take a look at this beginner’s guide to investing in bricks and mortar.
The most fundamental thing for any property purchase is the location. Just because a dwelling is cheap, doesn’t mean it’s a bargain. It could be in a crime ridden area, or situated in a high risk flood zone. Do your research and look for a home in a well established area that has seen property price increases for at least the past five years. You might be spending a little more, but your long term investment will be more secure.
Check out local schools, amenities and property prices. If you check out the real estate closer to you, and it fits the bill, this could be an ideal avenue for your cash. Try and find the worst house on the best street to give you a greater chance of outperforming the market.
Renting Or Flipping
You will have to decide whether you want many quick in and out investments by buying properties, renovating quickly and selling them on, or whether you want to keep your asset for the long term. By doing this, you can prepare for your future in a lower risk way. Becoming a landlord can be tricky and the responsibility can be overwhelming. You need to be on hand to deal with the leaky tap or the dodgy wiring. If this sounds a little burdensome, consider relinquishing this responsibility to a property management firm who will take over landlord duties.
Perhaps the most important thing is working out the numbers and ensuring that all of your financial ducks are in a row before you commit to any investment. Work out the rental yield you need to cover your mortgage repayment and leave you with some readies in the bank. By doing this, you can be certain that should you have any downtimes in terms of renting, your back up savings can cover it for a short time. Holding onto a humble abode for a decade or more should help you make money while renting and will see you with a profitable asset at the end.
Becoming a property magnate might not be on your agenda at the moment. However, looking at how you can invest in the odd patch of bricks and mortar will see you able to prepare for your family’s future.