By Jerry Mooney
For anyone willing to make some extra cash, property investment is one of the most popular options available to you. With this kind of investment, you are looking at something which can give you a considerably high passive income for life. That is, as long as you get it right. The fact is, it is not a given or an automatic thing. It is possible to invest in property poorly, or to fail to do it properly. If you are thinking of getting into property investment, then you should take every care to get as much out of it as possible. To do that, you will need to know some of the basic ideas behind it. With that in mind, let’s have a look at how to make the most of your property investment.
Finding The Right Mortgage
Before you buy your first property, you need to secure a good mortgage. Finding a good mortgage is much easier said than done, of course. But if you want to buy the property, then you need to make sure that your mortgage is suitable for your needs. It helps if you have some awareness of the basic types of mortgage and what they mean. To begin with, a fixed rate mortgage is one whose rate cannot change at any time. The obvious advantage here is that you know exactly how much you will be paying back on interest. Another major type of mortgage is the variable rate mortgage. In this, the rate can - and probably will - vary, but the initial borrowing amount is smaller. Depending on your situation, and whether it changes, this might be cheaper overall. Then again, it might not - you always need to check. If you secure a mortgage through the likes of Enness Private Clients, you can be sure that you know what you are getting.
The Value Of Timing
Any investment is only as good as the market at the time. Even if you are investing in something fairly certain, like gold, you need to know when to buy and sell. Otherwise, you might find yourself selling for less than you bought. While you would be pretty unlucky to have this happen with gold, with property it is much more likely. That’s because the housing market is one which is in constant flux. Although as a general rule, it is steadily increasing, it does also have down periods. As such, you need to know when to buy and when to sell. You want to make the most of your investment, so this is essential. It is a good idea to become a student of the market for this reason. The more you understand, the better you can predict the market. This will help you to make the most of whatever investments you have.
There is nothing more exciting than making a profit from your first property. From there, you have several options. If you are keen to carry on, then you can do so. And this is probably going to be your best bet if you want to make as much money as possible. When you branch out, be sure to be careful and take it slow.
Jerry Mooney is co-founder and managing editor of Zenruption and the author of History Yoghurt and the Moon. He studied at the University of Munich and Lewis and Clark College where he received his BA in International Affairs and West European Studies. He has recently taught Language and Communications at a small, private college and owned various businesses, including an investment company. Jerry is committed to zenrupting the forces that block social, political and economic justice. He can also be found on Twitter @JerryMooney