Making money from property is not as easy as it once was. Back in the early noughties you could pick up a bargain at auction, do nothing to it, sit on it for three months, and sell it on at a profit. Nowadays, you need to be more proactive and frugal with your cash in an effort to outperform the market.
Coupled with this, the new Covid-19 pandemic that has taken hold has had an impact on property forecasting. Things are much less certain and more volatile. The property gurus are unsure as to how the markets will fall later this year. While there is still money to be made from property but is it worth the risk in turbulent times?
If you want to outperform the market and achieve the maximum bang for your buck, you have to opt for a fixer upper. However, just because a pad is cheap doesn’t make it a good buy You need to focus on the location where the home is situated. Is it somewhere desirable? Are crime rates low? Are the amenities highly regarded? And are there decent transport links to the property?
Check out the property forecasts for the previous five years and if they have increased year on year, you may have yourself a good buy.
Fixer uppers can be difficult to come by as more people want to make lucrative returns. Head o a property auction and get a feel for the bidding system. If you do spy a dwelling you like on paper, you need to arrange a viewing and read the legal pack. If things look good, you should set yourself a top bid and not go over it.
You need to work out your sums. The property purchase price, the cost of renovating, taxes and fees cannot be more than what you are looking to sell for. If things add up, you could have a potential investment on your hands.
Investing In Real Estate
For those people who don’t want to get their hands dirty, investing in real estate could be an option. The construction industry is still buoyant, being one of the few sectors that haven’t been hit by the coronavirus pandemic.
People still need new homes to love in as populations increase and commuter towns become more popular. You could be an early adopter and invest as soon as plans are drawn up. Investing in real estate off-plan is becoming more popular as there is little effort needed on your part. When these properties are then sold, you can pocket the profit.
If you fancy being a landlord but don’t want the stress of finding a long-term tenant, think about a vacation rental. Purchase a ski lodge, a country cottage or a touristy city center apartment and you could pull in the big bucks during peak holiday seasons.
You will also have the added bonus of having a ready-made pad to visit off-season when it is empty. Getting the maximum usage out of the property can appeal to would-be landlords who don’t want the hassle of tenancy agreements.
Follow this simple guide and you could make money from property in 2021.