Today’s post is all about making money through property. This is an asset class that I find interesting, and what’s even better, is that even if you don’t have huge sums of money, you can still get involved in it.
In order to have a decent retirement one day, ideally, you need to have plenty of assets of all different types. The work place pension is sadly not enough anymore to sustain our retirement in the way that we want to live, especially if you are in your 20s and 30s. The money just isn’t there anymore.
So getting yourself educated in the world of investing is a perfect addition to add to your retirement funds.
Stocks and shares are one such asset class you could start exploring. Bonds, Gold and Property are other types of assets you could also invest in. The list doesn’t stop there.
Now, not all of us are fortunate enough to be able to afford to buy a second property to use to rent out, but this is of course one of the most obvious ways to generate an extra income.
Just for the record, this is NOT about using your home as your retirement plan. There are so many risks associated with doing this that I would recommend having a plan B, C and even D in place for your retirement. So many people make the assumption that their home will give them their perfect retirement, but it just isn’t a reliable strategy.
Property for all
Last week, I released a guest post about making money through property crowd funding. This is a great way to access the property asset class without spending huge sums of money. I’ll go into this more later.
So without further ado, I give you today’s contributed post! Enjoy!
Property is a perfect vehicle for making money if you’re willing to put in some hard work and take it seriously. Of course, there’s a lot to learn about all this, but you’ll pick things up along the way. This guide will help you to get started and make money early on in your real estate investing efforts. Read on to find out which steps you should be taking first of all.
Talk to Other Investors
First of all, you should take the time to talk to other investors because when you do that you learn a lot about what’s achievable for you going forward. You shouldn’t expect too much at first because every beginner makes mistakes; that’s just what beginners do. But if you’re learning from investors who have already been there and done it all before, you will soon get to where you want to be.
There will be a weekly property meet in your area where you can start to network with other property investors, so do some google searching a find one! Some popular ones in the UK include the property investors network, and progressive property.
Buy at Auction
When the time comes for you to finally start buying properties cheaply, auctions are where you could head to. This is where potential investment properties can be found, so it makes sense to at least attend a few and get a feel for them.
However, never bid on a home that you haven’t actually checked out in person, and always, always, always read the legal packs that come with the property. You don’t want to accidentally buy a home that’s wrecked beyond repair just because you wanted to take a shortcut.
While at the auction, stick to the budget you set prior to entering it. So many people lose their heads and end up paying way more than they intended, wiping out all their profit and then some.
Hire People You Trust
If you’re going to rent out the home, you need to hire people to help you who you know you can trust. Letting agents do a lot of the work so you don’t have to, but it’s important to scout out the options and to be sure that you can put your trust in the people you’re hiring. You don’t want to be left with regrets later.
Be very clear who you want renting out your home and make sure you factor in all fees to your calculations. There’s no point having a property that cash flows well, only to have it all eaten in fees.
Reinvest if You Want to do Better
Finally, you need to decide where you should go next after your first real estate success. You might be happy to sit on that investment and keep taking the rental income that comes your way. But you might want to reinvest that money to expand your portfolio going forward. That’s something you should give some thought to before reaching a decision.
What about if you don’t have buy to let purchasing money?
Because, let’s face it, not all of us have access to the cash for our first homes, let alone buy-to-let.
The alternative is to become a property crowd-funder, or find some appropriate stock-exchange funds to invest in property without having to do the leg work to own the property. This is a far cheaper alternative, and still allows you access to property assets.
Making money from property investing is not as difficult as you might think. Do your research and ask other people who have done it before you. That extra income could allow you to do more of the things you love, and give you a very comfortable and sustainable retirement.
I really enjoyed this post: property has so many avenues to explore, and the best bit is you don’t need loads of money to get started.
Good Luck- I’d love to hear what you’ve been discovering!
Today is the start of a completion to WIN one of 10 personal finance books… take a peek here to be in with a chance today!