7 ways to make money through property
For many people making money through property is the ideal way to bring in income and safeguard their financial future. There are risks involved with investing in property, but there are risks involved with all investment opportunities, this is the nature of investing. If you are keen to boost your finances through bricks and mortar, here are 7 ways to make money through property.
Letting the property out
One of the most effective and certainly most popular ways to make money through property is to let it out. There is a high level of demand for rental property across the United Kingdom, and this can provide you with regular income every month.
There are a lot of decisions to make when investing in buy to let property and the most important choice may come in deciding between acting as a landlord or hiring a property manager to act on your behalf. Hiring a professional property manager will cost you money each month but it will make your life easier, it will provide a better service to tenants and a good property manager can actually enhance your earnings.
Provide a holiday home service
Depending on where you live, there may be a high level of demand for “holiday home” rental options or short-stay rental options. The popularity of the Airbnb service has shown that it is possible to rent out property for days or weeks at a time and make a great return on your investment.
This may require a more hands-on approach on your behalf and you need to make sure you comply with all local laws regarding renting your property in this manner, but it is an option to consider.
Renovate and sell
Many people buy property, renovate it, carry out improvements and then sell it for a profit. Flipping property is a profitable activity if you know what you are doing, understand the market and can undertake improvement work on time and on budget.
This may be a strategy better suited to people with experience or connections with the building industry but there is no reason why any investor couldn’t use this strategy. There are risks associated with this strategy, like any investment, but buying in desirable areas and working with experienced professionals can minimise the level of risk associated with this style of work.
Utilise the gardens to grow and then sell produce
If you are thinking about using your property as a long term home and want to make the most of it in the short term, can you make money from its facilities or amenities? If you have a large garden area, is there anything you can grow that you could then sell? Are there ways in which you can add energy collection elements to your home? If you can place a lot of these on your property you may be in a position to obtain funding or money back from the energy suppliers?
If you are looking to make money from your property but aren’t considering selling or letting, this may be an option to bear in mind.
Consider foreign markets
When thinking about ways to make money from property investment, don’t limit yourself to the United Kingdom. With the £ weakened by Brexit, you may find it difficult to find an attractive investment abroad at the moment, but this won’t always be the case.
Considering foreign property options, either to let, use as a holiday home or just buy and sell can provide you with different options than you find in the UK market.
Property crowdfunding options
One issue that some people have with property investment is that it usually involves a lot of money being spent on just one property. This isn’t the ideal approach for many people and if you would prefer a way of diversifying your investment, you may find that property crowdfunding options to be more in line with your investment aims.
There are opportunities to invest in short or long term projects, you can provide peer to peer loans or you can buy shares in firms that buy property to sell or let. All of these options provide you with a different way to invest money in property and make a return, so may be more attractive to someone who wants to minimise their risk or scale of individual investment.
Choose the right property
No matter what option you choose, the right property is likely to be a massive factor in the amount of money you can make when investing in property. In the UK, there is a consensus that investing in flats will provide a better return on your investment, particularly for the buy to rent market, than a house. When it comes to making a sensible investment, a two bedroom and two bathroom property is likely to be one of the best investments you can make. This may mean you need to invest and change the nature of your home but if you do, you are likely to get a greater return.
This is also a reminder that property investments allow you to remain engaged with your investment. Unlike stocks and shares, you can positively impact on the value or worth of your investment, and this is something that is recommended for most investors.