by Nigel Hilton
If you don’t fancy taking the plunge into the property investment world full time, there are plenty of amateur property developers who would recommend the industry as a side hustle. Property investment takes many forms from buying a property at auction to renovate and sell on quickly to investing off plan in a range of holiday rental apartments overseas. Each investment has its own risks and it is up to you to decide which property portfolio you wish to create. Take a look at these ways you can invest in property.
Even if you don’t know your foundations from your lintels, you can still buy a piece of land to build a few homes on. You will need a lot of cash to pull this sort of investment off, but the profits can be lucrative. Purchasing land without planning permission and then obtaining it can see the value of your land rise astronomically. You could, of course, then sell at this point having done very little. If you are willing to stick around to see the full building project through, you could make even more money.
You can employ a team of builders and simply project manage the site. By doing this you are getting the experts in who know everything about structural issues, obtaining the correct smoke guard for builders, adhering to legislation and working to time and budget. While not the usual sort of property investment, this one could be the most rewarding, if risky.
Flipping a property means purchasing a dwelling that needs a scheme of works completing to make it habitable once again. Renovating properties is probably the most popular way of making money from the market. Purchase at the right price or below market value and you could have a tidy profit on your hands. Gone are the days of the early noughties when you could buy a property and do nothing with it for three months before making a ten percent profit. Now you need to be proactive and outperform the market. Make a list of all the tasks that need doing to your abode from the new kitchen to the new carpeting throughout and set yourself a budget. Don’t aim too high for the resale price as you need to make sure its achievable. With any luck you can walk away with a handsome return on your investment.
Renting out a pad to young professionals is a great long term investment. You can buy an apartment in the city center, rent it out for an amount that covers your home loan repayments and then enjoy seeing the property tick over for a few years. After a decade or when the mortgage is paid off you will have a fantastic asset on your hands. If you don't have the time to be a landlord, a management company can look after the day to day maintenance of the property so you don’t have to worry.
Investing in property is still worth your while as long as you know what you are doing, and research the risks fully.