Investing in property is by far one of the best ways you can ever possibly invest. Firstly, because unlike stocks or indices you’ll actually have something physical to show for your expenditure. Secondly, and indeed most importantly, you can make huge financial gains because house prices have been consistently rising for decades. There are many variables involved in making money in the property market, and this article does its best to inform you about the basics in property investment.
You can either go for a quick sale after purchase with a company like we buy homes, or hold off for a while and potentially get a better offer through tradition means down the line. Those are the two main ways of selling a home, but you can also rent it out for a passive income, though you won’t recoup your initial investment for quite some time. But, before you make any kind of profit you need to look at the property and work out what can actually make you money.
You’re going to start small, and you need to actually think what value you’re going to add? Have you been in the property market so you know exactly what will add to a house’s value? Were you in the construction industry? Or maybe you were a tradesperson and you can do work on the house yourself and so save money on fees. Whatever the reason, you need to be able to add value or if not be great at working out profit margins down to the last detail, you need to get reliable unchangeable quotes from tradespersons to make a reliable prediction otherwise you could be making minimal profit.
The primary form of increasing a home’s value is in extension. If you make a major extension to the side of a property, either downstairs or both, you will add a significant amount onto the house. Be wary, these extensions cost well into five figures, depending on what you do, so you need to balance the cost out with the expected return. After this, you can make general improvement, which are popular if you own a flat or apartment. These include getting the kitchen and bathroom up to a better condition, rewiring, changing the floor etc. They sound like small changes, but when coupled together than can increase the value of the house significantly, leaving you with a tidy profit.
Work on the garden makes for the lowest form of increase, but if you get some serious landscaping done by yourself or a tradesperson you can add some value to the house. Changing out the windows can help too, especially if they’re old and don’t have double glazing.
The final way of increasing value is regarding the ground ownership and planning. You can acquire the leasehold or freehold, meaning the purchaser will actually own the ground of the home instead of having to pay a low yearly rental (depending on who owns it). You can also get planning permission, the application can be quite tough, so getting it done and then selling it onto another developer who has time to build the add ons can be another fruitful way of making a profit in property development.
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