In the current economic climate there is almost no point in putting your money into many traditional savings accounts that will earn 1% APR or less. If you have a large lump sum of money sitting around then really your only option is to try and invest it in other things if you want to see it grow rather than shrink. To this end you need to know where you can put that cash that will make it grow and you need to know how to maximize your profits.
To do this and to make sure that your pot grows consistently and to a worthwhile degree, you should of course look into real estate which is for many the safest and most potentially lucrative way to invest.
Of course though there’s still an element of risk, even here, as there is with any kind of investment. Here then we will look at a few tips for investing in property to try and help you avoid mistakes and makes sure that you rake in the profits.
Choose the Right Property
Choosing the right property is of course the single biggest way to make your money grow and to maximize your profits. The price of properties will almost always rise eventually which is why this is such a safe way to invest, but the amount by which this value increases, and the speed with which it does, comes down to your choice of property.
When you buy stocks and shares you don’t just want shares that will be worth a lot of money in the future, you want shares that will be worth a lot more money in the near future. This means that the best purchases are those that are ‘up and coming’ and that means that they are in areas that are about to be developed, and it means choosing properties that are run down but that you can easily improve yourself to add extra value.
Use Various Income Streams
An investment property doesn’t just have to be something you sell after a certain amount of time – the great thing about properties is that they can make you money in the meantime too. For instance if you want to make this less of a scary and risky proposition, simply try renting out your property in the meantime before you sell it and this way you will be able to earn towards the mortgage.
Get a Good Loan
The whole point of investing in your property is to make as much money as possible, so you need to make sure that you aren’t wasting cash for instance on an unnecessarily high APR. Shop around and improve your credit rating and you can get a cheaper loan meaning lower overheads and more profit.
Use the Best Services
Likewise you also need to be careful when investing profit that you aren’t swindled by buying a dilapidated building or not getting all of the rights to the property when you sign. By investing in a good settlement agent, surveyor, estate agent etc. you can save yourself a lot of money and avoid problems.
James Hewitt is the author of the above guest post. He works as a real estate broker and provides excellent property investment tips through guest blogging.