A lot of people talk about buying investment property. However, this is not always as simple as it seems. To make any property a lucrative investment, you need to buy the right investment property and you need to manage it correctly.Here are the top three ways to make your real estate earn extra income for you and your family.
#1 - Buy a Rental Property:If you want to see your new property investment making money immediately, you should buy a property that you can easily rent out to someone else. The benefit of a rental property is that you can sell the property at a higher price than what you purchased it for - due to the appreciation of the land beneath it - while, at the same time, you collect an additional rental income. The rental income will help supplement your mortgage repayments on the property – or could even exceed them. In which case, you will receive extra money each month as landlord. When buying a property that you intend to rent, however, you must try to choose a property that has market value now. If it does not attract rental tenants straight away, you won’t see any money in the short term meaning you struggle to pay the mortgage repayments. So when you are looking to buy an investment property to rent, you must consider:
- Is it in a popular location for potential tenants? Eg. Close to universities and schools, close to shopping centers, close to major employment centers etc.
- Is it suitable for expat renters? If so, you can make more from rental opportunities if you market the property correctly to expats.
- Is the property currently livable? You may need to furnish the property, and make the property more attractive for potential renters. Eg. Consider security precautions; consider supplying services such as wi-fi or cable tv.
- All of these things require investing more money into the property but may be necessary to guarantee tenancy.