We are all trying to find a way to earn a little bit more money on the side and for most of us, becoming a landlord is a very feasible option. If you have enough money to invest in another property, it’s is a bit of a no-brainer. By having tenants essentially paying your wages on a monthly basis, it can appear to be a very easy way to earn money, apart from the fact that you are responsible for their well-being in the property. And also, you need to make sure that the place is up to code and safe, because if anything happens, it’s you that will be liable. So when it comes to becoming a landlord or buying a property, are there any other options that make a house a suitable investment?
This is the standard landlord route, and as monthly rent is a good way of lining your pockets, it is a steady income. This means that if you are gradually making a profit every month, you will be able to break even on this investment. And even after that, you can continue to rent out the property, and still earn more money, meaning you can start putting your finances into other investments, and so your wallet will potentially grow. While all this sounds great, there is that little matter of being a landlord, which means there will be a lot of hassle in terms of fixing issues in the property, as well as meeting tenants and making sure you meet the terms of the agreement by bringing the property up to code. You could hire an agency to do this for you but estate agents cost money, which will reduce your profits and so breaking even can take longer. One option to bypass this completely is to work with a property management company who will do most of the work for you, including refurbishing the property. Many companies specialize in turn key properties, where they will do all the leg work, including the acquisition of the property, refurbishing the place, as well as finding and managing tenants. It can be a lot of work if you are not prepared to find the right people to rent your property. The whole buy-to-let phenomenon is popular in many places, but you need to think about the personal impact on your life before you go ahead with this.
Buy To Sell Properties
Buy to sell is the other option when it comes to making money off property. You would purchase a property and sell it at a higher value, which can normally take between one and two years, and once you have sold it, this is where your relationship with the property ends. There are some distinct advantages in this, including making a good profit, and it is a bit quicker than buy to rent in terms of earning a sizable chunk of money. In this respect, being a landlord of a buy to let property could take you a few years to earn the same amount that you would get for selling your property. Don’t forget the rising prices of properties, as they show no signs of slowing down anytime soon! And of course, the fact is that once you have sold the property on, you don’t need to think about it anymore. The downsides include time, if you have visions of selling that property with a quick turnaround, it doesn’t always turn out the way you hoped it would. The other downside is the risk. There is a possibility you won’t see a return on your investment at all, and you could lose every penny. This can be down to various issues, one main issue is that you could potentially be unwilling to sell for a certain price, thinking the property is worth more. And the more you stick your heels in, the harder it may be to sell your property, meaning that you may end up selling it for a much lower price. It’s always best to consult a financial advisor in this respect so you know exactly what your options are before pressing ahead.
Property investment is nothing new, but these are two of the most popular approaches to making money out of a property, and while many landlords appear to live the high life, there is a lot of responsibility on their shoulders. Either way you look at it, it is a lot of hard work, so ask yourself if you are up to the challenge!