It is not an entirely unknown fact that the property market has exploded. The shift in work sectors and the reshuffle in infrastructure have left many people seeking alternative options for income. Property investing is one of them.
It could also be considered one of the more lucrative options, especially if you already have some capital available. In this blog, we’re going to look at how to invest in property.
If you’re a beginner looking at the real estate market, it might seem a lot like looking at an online casino. There are rules, groups, wins, and losses, but as any gambler knows, if you figure out the laws of the game, you’re already one step ahead of the rest.
One way in which to get into the property market is to use leverage to procure property. Leverage allows you to pay a percentage (usually 20%-25%, although it can be as little as 5%) and then pay the rest off over a period of time with the profit made from your investment.
Rental properties are probably what comes to mind when you think about how to invest in property. Rental properties are a big hit with people who already have the necessary funds to purchase a property.
Going down this avenue means that you will be a landlord. Landlords are responsible for sourcing tenants and dealing with their issues. It requires a lot of upkeep and is a very hands-on position.
Alternatively, you could employ a property manager to assist in the general management of the property and tenants.
The pros of having a rental property include a regular income that can take care of a part of, if not the full mortgage payment. It also has quite a few tax-deductible benefits. If you have a property or the capital for a property, this is a solid place to start.
House flipping is certainly not for the fainthearted. It requires experience in real estate and a hefty amount of free capital. House flippers usually try and sell an undervalued property at a profit within six months of purchase.
The risks and rewards in house flipping are high, which might satisfy the gambler in you, but we recommend extensive knowledge of the market or teaming up with someone who is experienced before setting off on your own.
In conclusion, there are quite a few options available for those looking to get into the property market. If you’re looking to invest, investing in property might be the best place to start.