Most people are keen to own their own property. Of course, not all of us are in that place in our lives to do that just yet! However, living in a property and investing in a property can be very different things. It is important that the place you call home also offers a financial benefit. But you can buy houses, apartments, and land to generate income without ever needing to live there.
The trouble is that all the houses, apartments and land in your local classified newspaper are well out of your price range. Just how far are you willing to go to invest in a property?
Would you go across town? What about across the state? Across the country? Or even across the other side of the world? If you do your homework and research thoroughly, you might find that your money stretches much further in other neighborhoods. You just need to be certain that the investment, wherever that may be, is sound and profitable.
Finding That Hidden Gem
You can find affordable properties all over the planet if you’re willing to look. Occasionally, you can find news reports detailing which cities or regions are likely to offer the best returns. Places like Indonesia have been promising buy-to-let hotspots for a few years now. After the financial crashes of last decade, Portugal’s properties are offering a lot of space for little cash. And recovery is building momentum now.
Choose property websites like http://rumahdijual.com/jakarta-barat/apartemen-murah to help you determine what type of properties you can get for your money. You don’t always have to visit a place to buy it, although this is, of course, always advised. Instead, you might hire a local agent who will assess a property for a fee and give advice on local and legal regulations. Legal representation is always essential, regardless of how well you know the property or the area.
Finding The Finance
Of course, local lenders might not offer you a loan for an overseas investment. Instead, you might need to approach an international bank or specialist lender to help you with your purchase. When you are buying property for business purposes, this can often be easier to do. That doesn’t mean that the interest rate is more favorable though. Consider all the options before picking a finance package. If you are hoping to become a landlord or developer, make sure you choose investments that are suitable for that purpose.
There is nothing stopping you from buying in cash and not using a lender. However, you would probably need to clarify and detail where the money has come from. Money laundering is something that property owners and their agents need to be very wary of as it can lead to prosecution. Saving up for a very large purchase like a house is unusual. It takes a long time. You might need to sell some of your other assets to raise this amount of cash on your own. It’s not impossible but may delay your purchase.
If you’re investing in property, chances are you’ve decided to make this your full-time career. However, if this is your first investment, you might still be working full time. You could ask your employer for a loan or a pay advance to help you out. If you haven’t been promoted for a while, why not ask now so you can enjoy a pay rise? Working an additional job can also help fill your savings pot a little quicker.
Developing Or Renting?
Becoming a property developer requires a lot of imagination and creativity. You need to have a great vision for plots of land and buildings that can transform them into something attractive and desirable. You will also need very good people skills to be able to work with other investors, architects, marketers, and planning officials. Still, wouldn’t it be amazing to put your name on the front of a building when it’s all done?
Property developers are entrenched in their investment for the long term. Some property developers hold onto their buildings and land after the development project is complete. They then act as landlords or building managers. Renting out the entire building to another company, or the individual units to personal customers are just two options at this stage.
Of course, landlords often have a few DIY skills they can rely on to renovate properties they buy. Most landlords have just a handful of properties in their portfolio. Of course, some can have tens of thousands! If you find a property in an area that is popular with renters, it makes sense to prepare the apartment or house for this purpose.
You might install a new kitchen and bathroom. A fresh coat of paint and some new carpets might be all it needs to be ready for the rental market. You can then choose to promote the property yourself, or use an agent with experience in this area to do the work for you. They are often better placed to fully vet the prospective tenants and can act as property managers on your behalf too. This will cut into your income and profits though.
Beyond developing a property to sell or rent, you can also simply sit on the property until the market shifts in your favor. This approach means you are not receiving any income from your investment until the point of sale. This isn’t unusual and is typical for home buyers anyway. Still, it prevents you reinvesting that cash quickly. If you’re not willing to have long term tenants in your property, why not consider short term or vacation lets?
Some properties are ideal for other uses. Think of things like photographic studios, small offices, or even holistic therapies! Check you have permission for these uses first! Then consider renting your property out to independent businesses like these. Of course, you might simply choose to move in and enjoy your property as your home! How far are you willing to go to begin investing in property?