There’s plenty of money to be made in property, and in terms of investment it’s one of the safest options out there. As a general rule, property will accumulate in value each year, and it’s always something that’s going to be in high demand meaning you can rent it out or sell it without too much hassle. But there are things to consider carefully before taking the plunge, here’s what you need to know.
Get your financing right
If you’re lucky enough to be able to buy properties outright to either sell or rent, then the process will be relatively easy- but lets face it, few of us are in this position (especially at first). In the beginning, chances are you’ll need to utilise some form of credit, or take out a buy-to-let mortgage on the properties you want to rent out. Speak to a company like Altrua Financial to find out what your options are, and work out the best way to go about things will be.
Consider a qualification
Having an in depth knowledge of property when you’re investing so much of your time and money into it is crucial, plenty of background reading and research should always be conducted. You need to know everything from ceiling prices to market fluctuations, taxes and much more. If you’re going to rent out the homes you renovate or develop then you’ll need to know what yours and your tenants rights are, how to prevent damage being made to the home and how to recoup your costs if needed. When you’re renting a property, there are a number of legal requirements like getting an annual gas safety certificate, and having smoke alarms on every floor that have to be followed carefully. There will be costs involved in this, and with so much money at stake in general, you need to go into the situation with your eyes open. On top of building up your general property knowledge, have you considered gaining a practical qualification? This could save you serious cash when it comes to renovating properties. Electrics, carpentry, painting and decorating, plumbing– the list is endless. If you’re able to do some of the work yourself then you save having to pay an extra tradesperson. It also helps you to stay in control of the project as you know you won’t be let down by a third party and understand exactly what needs to be done yourself. There are many different tasks involved with developing, building and renovating properties. If you’re able to take on any of these roles yourself, then you’ll save yourself a good amount of money.
Think about using an agent
More on the topic of renting, if you’re considering renting out your properties rather than selling them, it could be a smart idea to utilise an agent. They will do the day to day chasing up of things meaning your property investment can be passive- earning you money without any effort from you. It frees up time for you to be doing other things, either working full time or spending more time on the developing, buying and other side of the business that demands more attention.