We are all well aware that buying some form of property is a huge investment and asset, and some may say, it can be one of the biggest purchases you make in your lifetime. However, not everyone is completely satisfied with just buying the one property in which they live. Let’s look at the traditional way people consider property for one moment. Many people start off by buying somewhere they can afford, and moving up as and where the circumstances change such as a promotion or pay rise within their careers, a change in family dynamic when a new relationship forms or you start your own family, and then you may get to the top end of your scale and once retirement sets in you downsize to make the most of the capital you have made over the years.
However, there are some people who are not satisfied with the traditional way of buying and selling properties and much prefer to try and make the big bucks as soon as they possibly can. But you may be wondering if there is any other way other than this long term venture, I’m here to explain that there is. Here are all of the ways a property can make you money faster than just upscaling as and when your circumstances dictate. Perhaps it may inspire you to invest differently yourself.
Buying property to rent out
There are potential ways that you can own multiple properties without all of the outlay you may fear with additional mortgage costs and bills. This is when you buy a property for the sole purpose of renting out to someone else. There are two ways that you benefit in this sort of deal. Firstly, the property rental more than covers a mortgage payment thanks to a really developing rental market with more people considering this option than ever before. But secondly you also get the benefit of the long term value, this is because as we are all aware, properties rise in value over time. You don’t need to stick with the area you live either, renting means you can browse further afield and websites like www.selldurango.com/, for example, specialise in different areas so that you can find out where would be the most lucrative place to buy and rent.
Renovating property to increase value and profits
Another option to consider would be to take on rundown properties and improve them in some way. This could be a house that needs some modernising or cosmetic changes here and there. Perhaps a lick of paint, updated electrics and plumbing, it might go as far as a new kitchen and bathroom. Or it could be a complete overhaul where you knock down walls, extend, change the floor plan, upgrade the windows and doors, repair damaged walls and brickwork. I suppose it all depends on your own skill set, the money you have aside to actually do the work, or whether you know enough people to ensure that work gets done at a decent price. Of course, the major benefit to this is that you then get to sell the property at an increased value thanks to the work you have done, and the difference between what the property stands at financially and the final selling price is the profit you make.
Changing the use of a property
Another more alternative option with property is to take a commercial property, for example and old shopfront or warehouse building and changing the use of it to something residential. Or vice versa where you change a residential property to a commercial use. It is much easier to change a commercial property to residential use and it could become a house or one home or several through creating apartments and flats. This could end up being a more long term project but the profit potential can be huge.
Focusing on your own property without the long term plan
Finally, who says that you have to stay in your current home until circumstances change that you need to move, you could consider updating your property and making money that way and increasing your cash flow this way. Maybe an extension could be on the cards, or the home improvements you have been saving up for. Websites like http://blog.croftarchitecture.com have some great advice. Getting them done and selling on enables you to move onto the next project and can see you ending up where you want to be financially far sooner than you intended.
I hope that this has inspired you to consider some other options where property can make you some big money.
This is a collaborated post.