For many owning a house is a dream come true – but many use property investments to generate a regular income for them. This can be done in several ways.
Write down your strategy
First try to get as much information as possible on the property market you like to invest in. Whether being the location or/and type of property. Then think carefully about your plan: what do you like to achieve? How big you want your property portfolio to be? How much can you actually afford to start with? Would you be able and willing to make your hands dirty? Once you made up your mind you have a good picture of what your first property should look like.
Buying the right property
Choosing the first property is the most difficult. It is very unlikely that you will find something right away that ticks all your boxes. Don’t forget you are still learning it’s probably best to start with smaller deals and take it from there.
Don’t be afraid of properties that still need some TLC, especially if you don’t mind to do some works yourself. Usually you will get those properties at a discount and this means you can add value to your property straight away yourself.
Always look at your strategy to make sure the property fits with your goals.
In many countries you will be able to get tax advantages when you do some upgrading on your property. This is not an income as such but definitely helps in your overall financial situation.
Of course a nicely renovated property will also be more appealing to quality tenants. Make some research before to see to which type of tenants makes most sense financially.
Selling your property
Once you added some value to your property you might want to sell it again to generate some cash flow. Like this you will be able to invest your money in a better deal and climb up in the “property ladder”.
Renting your property
Make your homework: You have to know the rental market. What is the most profitable rental in the location of your property? Long-term, holiday rental, renting rooms to students…Like this you will be able to maximize your rental income.
If you decide for a long-term rental, make sure you pick the right tenants – they can make your job as a landlord a lot easier.
Hiring a management company
At first renting a property looks fairly simply but actually involves a lot of things. That is why in most cases – especially if you own more than one investment property – it is definitely worth it to have someone managing it.
You have to be clever about the amount of time and energy you actively put into your properties. Keep in mind if someone else is doing the managing for you, you will be free to focus on your next investment projects.
Of course this doesn’t mean that you will loose control of your property investments, you will still keep an eye on things and the property manager will give you regularly the numbers of your income, outgoings and keep you updated on problems with your property.
Get the most from your investment
To get the most out of your property investments might be a mix of buying and selling as well as renting – it all depends on your market. Make sure you make your research carefully and maybe ask advice of some experts.
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