Property is well known to be one of the most lucrative forms of investment. Over the years, it has produced many a millionaire and is mostly a passive income. It is little wonder that people explore this as earning extra cash on the side of their day job – or even instead of their full-time job. Just look at David Ebrahimzadeh!
The biggest issue with investing in property is the capital to get it going to start with. It can require a fair amount of money to get going, but once you have started off, you can make no money no matter how big or small the property that you have bought is. Let’s take a few of the ways that you can make money in real estate.
Long term residential rental
One of the most common ways to make money in property is to make use of long-term residential rentals. People will always need a place to live, which means investing in rental accommodations. Do your due diligence to make sure any properties that you buy to rent out in the long term are suitable and in the best location.
Location is incredibly important when it comes to long-term residential rentals. A good location ensures that you have an asset that increases in value as time goes on, but it also means that you are much more likely to find a tenant who will stick around in the long term. Look for places with excellent nearby public amenities and links to the local transport network. It is better to buy a run-down property in a good area and do it up than to buy a perfect property in an undesirable location.
This trend has become a big business in recent years, and that is because it is an excellent way of making money. The general idea behind it is that you buy a property that needs some work, spend some time doing it up, and making it good and sell it straight on for a profit. Again, go for ugly houses in nice areas – you are more likely to get a good return on your investment, but professional brokers in real estate can give you more advice.
If you want to get into the rental market but are worried about some of the potential issues that a long-term residential tenant can bring (such as arrears and refusal to leave the property), holiday rentals may be a good alternative. Again, it is reasonably passive, especially if you use a holiday letting agent and cleaning agency to sort it all out, but it can be seasonal. It is also tricky to make money from unless you live in a busy tourist area. However, you could market your property on air BnB and attract customers who may be on business trips, although these often tend to be for shorter periods.
As you can see, there are a variety of ways that you can make an income from real estate and property development; it is just a case of finding the one that is most suitable for you and your property.