How Can You Make Money Off A Property?

 

Written by Sapphire of the Savvy Women Group

 

Property can be seen as a good investment choice because they are generally less volatile than a stock or share. In general, the value of housing will likely increase, this is even more likely when you choose a good location.

You may be advised that the rate of returns on Property Investments are lower than other investments, but when using the power of leverage; you can get more for a smaller amount of capital. (e.g., if you have £200,000 to invest with a 25,000 deposit on each, you will have 8 properties worth the value of £200,000 each which can all contribute to the overall profits you make. We dissect leverage within property in Next Monday’s SWG blog.

 

So how can you make money off an investment property?

STEPS TO FOLLOW:

 

 

You can start by doing your research and see what areas are more populated and what the average prices on the housing market are. Find a below market value (residences that are for sale at a price below their actual market value) home and invest in that one.

Research the area you are thinking of buying in thoroughly. Location has a lot to do with increasing the value of your property (which will appreciate over time) because the better area, the more likely someone will buy your property.

Remember: The longer a house is off the market the more equity/value it accrues. These are just some ideas to keep in mind to make a profit off an investment property.

For tailored property coaching, mentoring and business advice, book your FREE 45-minute consultancy call today.

 

One thing you should always keep in mind when purchasing a property, is to take into consideration all the money that is going into the renovations. Ensure you keep some extra money set aside in case something comes up like a water leak, small repairs etc. so you are readily prepared.

AN ALMOST GUARANTEED WAY TO MAKE MONEY ON YOUR PROPERTY: RENOVATIONS!

You’ll use this to make the house look appealing to potential buyers. Remember that general upkeep like paint work, fixing small jobs, floor and trims etc. will aid in the value of your house going up. That is one way to see a return on the property that you have invested time and money into.

ANOTHER GOOD INVESTMENT IS LOOKING INTO A “RENT TO BUY” PROPERTY: You can become a renter with the intent of someone eventually buying the property.

 

WHAT IS R2B? Rent to buy is a UK government initiative that helps renters in social housings buy a home. You can make some extra cash that way.

 

HOW DOES R2B WORK? Rent to buy works by offering reduced rent to tenants, enabling them to save money that they can put towards buying the property.

 

There is a con to this option though, because R2B requires you to earn less than £60,000, a good credit score is a must. There are some people out there that cannot get their credit score high enough so now they are not able to buy the house and you would get stuck with the rental property. To learn more about R2B visit USWITCH today.

 

LEGAL TAX DEDUCTIONS:

 

You can write off certain tax deductions when you work with an experienced accountant. That can help you get back some of your expenses throughout the year if you are a landlord. That would be a nice tax break!

Check out our previous blog post Tax Benefits Available Through Investing in Rental Property (add link to this when this blog post is live), where we speak in-depth about the different legal tax avenues you could take.

 

SELLING YOUR INVESTMENT:

A property can grow in appreciation, meaning if it is off the market for a long period then it grows in equity. If you wanted to you could sell it for more than you purchased it which means you would gain a handsome profit instead of taking a loss.

If you are wanting to keep the investment property for yourself another option would be to investigate refinancing the house. Refinancing= replacing an existing debt obligation with another debt obligation under different terms. There are many reasons you may refinance a home; one could be to access a better interest rate. Refinancing can give you back some money on your investment, and you can use it for renovating the house or just keeping the funds for a rainy day.

 

As a property investing expert, I have flipped homes, renovated, rented out and sold investments. I take my expertise and advise other Savvy business-women what deals will be beneficial to them and have used this method of investing for years. Buying a lower cost home and then fixing it up and selling it is a very worthwhile investment.

 

Sign ups for our Savvy Investor Academy are now closed, so instead join our AQA accredited property courses today – upskill yourself and increase your investment knowledge. Download our FREE Complete Beginner’s Guide to Property Investing now!

 



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