Did you know that property is one of the safest investment opportunities for your money? That means that you don’t face quite as much risk of losing some of your hard-earned cash when you place it in real estate compared to placing an investment in stocks and shares. But you shouldn’t think that you are guaranteed to become a millionaire from your property, though. It doesn’t pay to simply sit back and watch it in the hope that your returns will grow. It doesn’t always work like that. Instead, you need to be a little bit more proactive to help your potential returns grow as much as possible. Ready to try and unlock a new life as a property millionaire? Here are some ways you can turn the key on high returns from your property.
Play The Long Game
You need to be very patient when you start playing the property game. You shouldn’t expect to see an increase in your money anytime soon, but if you are willing to wait a few years, you should start to see some difference eventually. Because of this, you should also try and stay well away from any situations in which you are forced to sell. So, if your finances aren’t looking too healthy right now, it’s best to wait to invest in property. Otherwise, your money situation could get a lot worse, and you might end up needing to force the real estate just so you can stay afloat.
Start With Apartments
Are you completely new to the world of property investments? If this is the case, then you will be much better off starting to invest in apartments and flats rather than houses. If you take a look at a real estate agent’s website, such as daytonarealestatebuyersagent.com, you will see that flats and apartments tend to be a lot cheaper than houses. So you shouldn’t have to scramble around for as much cash to buy a new apartment. Not only are they cheaper, though, but they are also easier and quicker to do up. Plus, they are suitable for the rental market so you can make some big returns by either selling it on or renting it out on a long-term basis.
Add Some Value
Whether you are going to rent out your investment property or sell it on, you should always try to add some value to it before you do anything else. Even if you just give the whole property a fresh lick of paint, you will find that this makes it a lot more attractive, and potential renters and buyers will be a lot more interested in putting in an offer. There are plenty of ways you could increase the value of your new property even further, though. For instance, if you have a loft or attic space that is only used for storage, you could always convert it into an extra bedroom. People want as many bedrooms from their property as possible these days, and doing these kinds of conversions will be really profitable for you.
Always Remember Tax
When you start to make considerable returns on your properties, you will have to pay tax on these profits. It is super important that you declare all property profits so that the taxman knows about them. If you don’t, then you are breaking the law and will be prosecuted accordingly. This could result in a hefty fine and, in some extreme cases, you might even have to spend some time in jail. Thankfully, though, there are some ways you can try and keep your tax payments down to a minimum. For instance, you are able to split any income that you get from your rental properties between you and your spouse. You can also claim any purchases, such as new furnishings, as tax-deductible expenses. These are deducted from your rental income. You can read more about property and tax online in articles such as theguardian.com.
Look Further Afield
Currently, the property market in the US is doing very well indeed. That’s superb news for people who already own their own properties, as they will have no doubt risen in value since they first bought them. However, this isn’t particularly good news for people looking to buy and invest in real estate right now – prices will be through the roof! And, even though prices continue to rise, and you are pretty much guaranteed to increase your investment, it can be ever so difficult getting the money together to buy in the first place. So, it could be worth property hunting in foreign markets.
Don’t Forget The Garden
When property investors are busy working on their new property and making sure that it is all up to scratch, they often focus too much on the house or apartment itself. But it’s also necessary to remember about any outside spaces. Working on the front garden is particularly important as it can really help to improve the property’s curb appeal.
Follow Building Trends
Did you know that it’s possible to find out what kinds of planning applications have been passed in your local area? This is really worth finding out if you get the chance. That’s because you will be able to see if there are any current building trends. Homeowners regularly change their properties to follow all of the latest trends and styles, and following these on your own real estate can help you push up the resale or rental price. For example, does it look like there have been a lot of applications for conservatory extensions? If so, then it’s worth following suit and adding a conservatory onto the back of your home if you have the space. That’s because it looks like they are very much in vogue right now, if the planning applications are anything to go by.
Making some serious gains from your property investments isn’t always easy – as you can see, you need to be willing to put in some serious effort. But it will certainly all be worth at the end of it all!
This is a collaborated post.