With the jobs market ever evolving and more of us searching for new ways to make and save money, it pays to think outside the box for sources of income. While once a nine-to-five job was the standard, it’s now pretty normal to work remotely, build a freelance business or simply earn extra cash from a ‘side-hustle’ on top of a regular job. Another clever way to make money outside of your regular working week is to invest in property.
While the struggles of many to get onto the property ladder are well-documented (particularly in big cities like London) investing in flats and houses is actually more accessible than meets the eye. For some inspiration, read this list of proven ideas for making money from property, even as a total novice, or with minimal startup funds.
How to invest in real estate: With or without a big budget
There are lots of brilliant ways you can invest in property, even without huge savings or an inheritance in the bank. It can seem scary to embark on a property adventure without the safety net of some serious funds, but there are plenty of possibilities, including ones which don’t require enormous personal wealth.
Peer-to-peer lending networks divide lenders’ money between multiple borrowers in the form of many small loans. The government also offers a Help to Buy scheme which supports those on a smaller budget through the investment process. Trading in your fixed assets is another option, as is finding a private investor to help you get a foot on the intimidating property ladder.
Go in with a positive attitude and take advantage of the many options for financial support available to you.
1 See where leasing leads you
Perhaps buying a property is an anxiety-inducing step too far for you right now, but consider leasing a property instead. If you’re not ready to invest huge amounts of money right at the start, leasing can be a prudent option. It even suits those whose credit rating is less than spectacular. Experts recommend leasing a property just as the market is beginning to climb, with the idea being that you’ll gradually pay off a considerable chunk of the price tag if you do eventually choose to take the plunge and buy.
2 Do up an ugly house in desirable surroundings
Renovating a property can be not only a lucrative project, but and enjoyable one too, if that’s your thing. What’s more, you’re likely to make an impressive profit too if you play your cards right. Top tip from those in the know: choose a run-down and grotty property in a sought-after area within reach of good schools and appealing amenities. This way you’re guaranteed to sell for a much higher price than you invested. Good relationships with contractors are vital here; Male sure you look at the property carefully before you buy. Blind-buying at an auction is not advisable, since you won’t have a clear sense of the project you’re taking on. A final tip for making a sensible investment is to think about the kind of work you’re prepared (and trained) to do. High quality wooden flooring for example, shouldn’t be too hard to recreate by yourself or with your partner, but knocking down walls or re-wiring electrics should be saved for the experts.
3 Buy with the goal of renting to long-term tenants
Probably the most common and arguably the easiest way to make property work for you is to rent a place out to paying tenants. You can do this either as a private landlord or by working closely with an estate agency who’ll do some of the hard work for you, at a price of course. As with a renovation, be sure to repeat the property mantra: location, location, location. Wherever you choose to invest as a landlord, make sure it’s somewhere desirable if you want to make your money back – and more. Consider the proximity to shops, gyms and schools before you buy.
Get into holiday rentals if you already own a place
Our final suggestion for turning a property into an extra source of income is to rent it out to short-term guests visiting the area. The best way to ensure this is as financially rewarding as possible is to turn your home into a space which reflects – to some degree at least – a ‘brand’. In other words, make the most of your home by creating attractive interiors and invest in good quality photography to make your property as appealing as possible online. Crucially, by providing a pleasant experience, building great relationships with guests and offering local tips and advice, you’ll guarantee good recommendations that will help turn your home into a legitimate money spinner. Who knows, you could form some lifelong friendships while you’re at it!