Property is a popular way to invest money. For some people, investing in property is about getting a beautiful home to raise a family that you can sell on for a profit later on. For others, property investment is about putting some spare cash into a building and letting the investment mature. For a rarer few, investing in property is a brilliant opportunity to flip a fixer-upper.
But no matter which type of investment you go for, you need to think carefully about what your plan for that money is before you choose the route you want to go down. Property is rarely a quick win!
You Have Cash to Invest
If you have savings that aren’t currently working very hard and are extra to your emergency fund, investing in development through a company like Montague Property could be the perfect option for you. By investing in a building rather than a specific unit or house, you don’t need to worry about collecting rent or making renovations.
Investing like this is quite an easy way to make your money work a little bit harder without you actually doing anything yourself. As far as investing in property goes, this is the easiest path to take, just make sure that you do your research before you part with any money.
You Want to Build a Broad Portfolio
Building a broad investment portfolio is a brilliant way to sure up your financial prospects and property should definitely feature. Though renting can have a variety of benefits, if you can afford to buy a home, it is an excellent asset to have in the future. Don’t be afraid to buy a house you can fix up over time if you are a first-time buyer.
But you might also consider buy-to-let properties. As long as the rent covers the mortgage, you will end up making a small profit each month and have another asset in your portfolio. This is actually an ideal option if you have elderly relatives who need to move into a care home. Instead of selling their house, renting it out could cover some of the cost of their care and you will keep the asset.
You Want a Project
House flipping is a great option if you have a range of handy skills. Essentially, house flipping is about buying a property that has potential and making improvements in order to sell at a higher price. If you like doing home improvements, this could be the ultimate challenge for you and some people get so into it that they do it again and again!
As property investments go, this is the quickest way to see a return on your investment but you must be aware of all the costs before you begin. Do remember that estate agents will take a cut when selling the property and you will need to pay legal fees too. If you are new to the game, it is worth getting a professional builder in to evaluate the potential of the property and suggest how much value could be added.