Money burning a hole in your pocket? If so, you might be wondering what to do with it. In the past, you may have thought about just locking cash away in a long-term savings account. As you doubtless know, savings accounts don’t pay much interest these days. Instead, it makes sense to stick with property investment.
You might think buying properties is a bad idea in today’s turbulent economy. Here’s the thing: it makes sense more than ever to do so right now! Why? The answer is simple: people always need somewhere to live. As many individuals are finding it hard to raise the money for a deposit to buy a property of their own, they’d prefer to rent somewhere for now.
As a property investor, you can profit from such situations and solve your tenant’s housing problems at the same time! It’s also not uncommon to eventually sell properties to long-term tenants – for the right price, of course.
The following are some property investment strategies you ought to consider:
1. Buy a fixer-upper
You don’t need me to tell you there are scores of properties on the market that need total refurbishment. I’m talking about the kinds of places that just need gutting and starting from scratch! Yes, they are super-cheap to buy as they aren’t in a habitable condition. But, you need to spend some time (and money) to restore them to their former glory.
2. Property flipping
Do you want to make a profit fairly quickly? Not interested in long-term investments? If that sounds like you, consider flipping some properties. As the term suggests, you simply buy properties for one price and sell them on again for a higher one to make a profit. You might need to do some minor renovation work for such investments.
3. Buy an apartment block
With the population growing at a rapid rate each year, there are more professionals and young families looking for apartments to rent in the city. If the price is out of your reach, consider co-investing with others in an apartment block.
4. Invest in a luxury condo
There are tons of new city center developments like the Upper West Side apartments in Manhattan. If you bought a luxury condo, you could rent it out to business professionals looking for short-term lets.
5. Commercial conversions
Some property investors buy commercial premises and have them converted into residential dwellings. A typical example is when warehouses get converted into apartments in up and coming locations. Be sure to check that such an objective is feasible before you buy.
6. Property investment joint ventures
Do you have a friend or family member that also has some spare cash not doing anything for them? If that’s the case, you might wish to consider putting your money together. Doing so gives you both greater choice in the property market. Yes, you’ll have to split the profits. But, it means you can do a lot more and get things done much quicker with a larger sum of money.