Why Real Estate Will be a Positive Investment of Any Business Person’s Future

When people ask why you got into the business game in the first place, chances are that you intended to secure a positive financial future for yourself and your loved ones. After all, that’s where all of your profits go, right? You want a nice home, a comfortable lifestyle and access to everything that you might want or need as time goes on.

You also want a comfortable retirement, where you can enjoy yourself and won’t have to worry about how you’re going to afford your home, bills, and food. However, owning a business doesn’t necessarily guarantee and secure this for you.

We are all well aware of how the marketplace can fluctuate, taking out some of the most unlikely big name companies in its wake. So, you’re going to want to have as many sources of income as possible, right?

This will help to keep you stable, even if your company experiences hiccups down the line. A good place to start? Real estate. Here’s everything you need to know about what could be your next biggest investment.

Why Invest in Real Estate?

Getting involved in real estate can become much more than simply buying a home. You can use real estate as an investment opportunity. You have two options. First, you can buy a property to let.

Having purchased the property, you rent it out to a tenant. Their rent installments will eventually cover your original costs and you will then continue making a monthly profit down the line. Second, you can purchase a property and then sell it on for a higher price. Either way, you are likely to make a profit from your investment.

How to Get Started

So, if this sounds good to you, where do you start? Many people will have one big question to start with: Do I really need a realtor? Well, a realtor will help you to buy and sell real estate for profit.

Many standard estate agents get a bad rep and often for good reason. They are apt to mis-sell properties, exaggerate benefits and sweep problems under the carpet. A good realtor, however, follows a code of ethics that will see you get the best deal when investing.

They pledge to put the interests of buyers and sellers ahead of their own, resulting in happier deals on both sides of the transaction. They also refrain from exaggerating, misrepresenting or concealing facts about a property.

In short, using a realtor is an extremely good idea. It will ensure that your tenants or buyers have a high level of trust in you as a landlord or seller.

Should I Refurbish a Property?

When you first purchase a property with the intent to sell or let, it is essential that you carefully examine not only the property that you have purchased but also others that are currently up for sale or let in the area.

This will allow you to see where you can make your property stand out on the market and draw buyers to your property over another. Sometimes it will be most profitable for you to leave the property as it is.

However, occasionally refurbishments can add a whole lot of value to the building. Consider loft conversions, extensions and the installation of extra bathrooms.

Once you’ve completed all of these steps, you will have an extra source of potential significant profit in your life. Not only can you rely on your business, but you will have your real estate investments to fall back on too! This will make your future as secure as possible.

Important Investment Advice To Make The Best Return On Your Money

There are many reasons that people chose to invest their money. Some folks like the thrill of the game. Others enjoy knowing their cash is working hard for them.

But everyone that invests shares one common goal, that is increasing their wealth. Which begs the question how should you invest to ensure you maximize this? Read on to find out.

Bonds

First of all, let’s look at bonds. These are when you the investor lends money to either the government or a commercial company, who will then pay it back with interest. However, they are not the same a fixed rate saving bond. As this is basically a saving account that you hold over a certain length of time.

Bonds are lower risk than stocks and share, but they are still linked to the markets. That means the return you can make on them will vary depending on the interest rate.

Also when buying bonds, it’s a good idea to look not only at how much they cost but also the yield rate. This is the percentage of the original price you paid for them that you will get back each year that you hold the bond (that the company has your money). Obviously the higher the yield rate, the better the return.

Property

The next is you may wish to consider investing in is real estate. The property you chose to put your money in could be a mountain cabin, an urban apartment, or even a commercial property.

But before you part with you hard earned cash, you must know what you plan to do with the property you invest in. This is because it may be economically sound to buy property to let as a vacation home in some areas, but not others, and you need to make sure that you will get a decent return on your money.

Stocks and Shares

Stocks and shares are probably one of the most famous ways of investing money. However, whether they become profitable for you in the long term is related to many different and complex factors.
In simple terms, a stock is when you buy a small share in the company. This can be held on to or resold as you see fit. Of course, the price that you get when you resell depend on how well the company is doing, how good their reputation is, and how stable the market in which they are operating is.

As well as many other factors such as whether they have been part of a recent merger or hostile takeover.

Most people see stocks and share high risk, but many investors have proved that as long as you invest money that you can afford to do without for a long time, you can usually play the waiting game to your advantage and come out in profit.

The exception to this rule being penny stocks which are more high risk. Although this hasn’t stopped some people making a fortune in quick time by investing their money wisely in this area.

 

5 Key Factors To Consider When Buying Property

 

Property may well be the most expensive purchase of your life, so it better be the right purchase. There are countless details to consider, including personal touches and home comforts that may be suited to your specific needs, but when you boil it down to the main factors these are the things you should really be looking for.

Location

Unless you’re that much of a free spirit that you can live anywhere, location is what matters most. Besides you can do up a house until it suits your needs, you can’t then move that house to a new location.

When doing property search always check the neighborhood. Make sure that there’s sufficient parking if you’ve got a car, and that important services aren’t too far away.

Talk with a few of the locals to get an idea of what it’s like to live there and schedule different viewings at different times to see the area at night and day, at rush hour and on a weekend. From here you will be able to gage what it is like to live in the neighborhood. Distance to work, local schools and a religious building may also be a factor for some.

Cost

Property is expensive, so work within a strict budget. You can use an online mortgage calculator with insurance and taxes included to help you stay within this budget. On top of this, you should account for removals fees and surveyor fees if you are calling in a surveyor.

Age of the property

Older properties can often require a little more TLC. Electrics may need to be rewired and insulation may need to be repaired. A surveyor can help spot these faults early in the bud.

New properties may not be as prone to these faults, but without as much history you do risk not knowing what could be around the corner.

Space for growth?

If you’re single, will you need space for if you meet a partner? If you’re a couple, will you be starting a family in the near future? These are all important questions to ask yourself when choosing a property.

If there aren’t enough rooms for your future plans, consider whether you’d be able to expand. If the property has a loft, you may be able to convert this into an extra room. You may alternatively be able to extend the house to include a conservatory or a downstairs bedroom.

Appreciation

In almost all cases, property prices are going up. That said, you will be more likely to make a profit from certain properties than others. If you plan to sell and climb the property ladder afterwards (or downsize and make a profit) appreciation is an important factor to consider.

Remember that there are alterations you may be able to make to the property that increases its value. This could include building an extension, sprucing up a garden or even changing the décor. Take this into account when looking at property and incorporate it into your budget.

Which Type Of Property Makes The Most Sense For You?

Are you thinking of taking your first steps onto the property ladder? Are you hoping to move to a larger house or do you want to expand your property portfolio? If you’re interested in buying, it’s important to think about the kind of property that makes the most sense for you. Here are some options you may want to consider.

The first home

If you’re buying your first home, the easy option is a new build. With a new home from firms like enso home builders, you can move straight in, and it’s much easier to work out your finances. If you take on a project, your initial outlay may be lower, but you could spend a fortune on renovation work.

You’ll also have to factor in the time you’ll have to wait before you can move in. You may incur additional costs if you’re renting or you’ll have to stay with friends or family for longer than planned. With a new home, there’s also the possibility of customizing the design to suit your style. There’s also a lower risk of anything going wrong.

The doer-upper

If new homes aren’t your style, and you’re feeling brave, it may be worth taking on a renovation project. Provided you have a firm grip on the budget, and you take the right steps, this kind of acquisition can be hugely profitable.

Plus, you’ll get a home that suits your style. If you are thinking of buying an older home, make sure you cover all the groundwork before putting an offer in. You’ll need to get accurate projections of cost and timeframe before you commit.

The investment opportunity

If you’re looking to buy a house purely for investment purposes, leave your heart at home, and use your head when making decisions. You don’t need to form that emotional connection when you’re buying a house or flat rather than a home.

With investments, location is key, so make sure you know the area well before you buy. Look at the market value of houses in the same area, and work out your margins. If you can’t afford to buy in established areas, look out for up and coming suburbs. If you spot new houses or schools being built, work on new transport links or cafes and bars popping up, these are positive signs.

The re-build

In some cases, you may fall in love with the location and plot, rather than the property. In this case, especially if the house is dilapidated, it may be an option to purchase the land and take on a building project.

If it’s not possible to salvage the current property, and you have permission to do so, you can flatten the existing shell and start again. Building a house gives you the freedom to design your dream home, and it can sometimes be a cheaper way of moving up the ladder.

If you’re thinking of buying a house, it’s worth considering all your options. Think about what you want to get out of the property, which styles of homes you prefer, and how you could get the best out of your investment

Rental Investments: Things to Consider Before Renting out Your Property

So perhaps you’ve come into possession of a property. Maybe you’re moving out or thinking of switching homes, but you’re not sure what to do with your old home. The most obvious option would be to just sell it, especially if there’s still a mortgage on it.

You might even be able to make a small profit if you’ve had the home for a while and property prices have risen in your area. But have you considered the option of renting it out?

Renting your property comes with a unique set of challenges, but it’s also quite a profitable real estate investment and even if you have a mortgage on the property, you might be able to continue paying it off or at least get some money to help you pay it off by renting it out.

However, it’s important to let your mortgage lender know because buy-to-let mortgages are different to standard ones. If you’ve ever thought about renting your property, take a look at some of these pointers before you make a decision.

Image Source:

Landlord responsibilities

If you rent out a property you’re considered a landlord. You have a lot of responsibilities when it comes to your property, such as making sure it’s free from health and safety hazards, carrying out the relevant gas safety checks and also checking if your tenants are legally allowed to rent properties in your country.

You’ll also need to book health and safety inspections to confirm that your property is safe to live in, and any problems that the inspector finds has to be fixed before you’re allowed to rent it out. This can include dodgy structural damage, uneven stairs or cracks in the walls.

If your tenants report a repair or a broken appliance that’s part of your property, then it’s your responsibility to make sure the relevant works are carried out and paid for. You’re responsible for most, if not all the repairs and it will come out of your own pocket, so make sure the tenants you rent the property to are capable of keeping it in good condition if you don’t want to be refurbishing it once their contract expires.

Finding tenants

There are rental property management services you can hire to hold onto and advertise your property to potential clients. They’ll usually charge a fixed fee or a percentage of what you make, but it makes sense to leave it to the experts to manage your property if you’re not too sure how to do it.

You can use the internet to reach the masses if you want to advertise your property on your own. You can use directories such as craigslist or websites dedicated to properties. Many websites will offer you a free listing opportunity so you don’t need to pay for your first time. You could also use social media and connect with local property rental services or speak directly to potential tenants.

A more traditional option is to advertise in printed media such as magazines, publications and of course, posting adverts in local store windows that allow for it.

Find The Perfect Property Using This Practical Advice

When you’re looking into buying a property, you should never rush the process. It’s a huge purchase that will last you for a long time, so make sure you get the perfect one. Certain aspects make some properties more appealing than others.

You also need to do your research when investing in real estate. Various factors can affect the value of property. You’ll want to try and buy low and sell high, so make sure a lot of thought goes into your decision. All in all, no matter what you’re getting a house for, you’ll want to ensure you get the perfect property. Here’s some practical advice to help with your search.

Search Everywhere

When it comes to finding the perfect property, you’ll need to carry out an extensive search. Use all resources available to you and consider all options. Start with your local area. You may notice attractive properties with sale signs outside. You could also talk to local real estate agents to see what’s available.

You should also turn to the website. Many sites list a range of properties with details on value and what’s in the neighborhood. Don’t just look into your own area- you may find a fantastic piece of property in other locations. Many sites offer real estate in valuable areas, so consider these options.

Looking further afield is particularly useful for investors. Buying in stylish locations can help you make a good return on your investment. Even when you’re looking for a home, it’s worth searching far and wide. You might just find your dream location.

Go To Viewings

Create a list of properties you’re interested in and make sure you view every one of them. You may be able to find a lot of information online and in brochures. But only a viewing can give you a real feel for the property and how it suits you.

Real estate agents will always offer viewings of their properties, so take advantage. Look around the house and check that everything is in order. You might also want to take a stroll around the neighborhood to see what it’s like. Look out for house investment risks such as dangerous areas and property damage.

A viewing also gives you a chance to ask questions. You might want to ask how long a property has been on the market and how many people are interested. Some agents may be willing to make some improvements to the property before selling it to you. Get as much information as you can and take notes on every property.

Consider The Value

Every property purchase is an investment, so make sure you consider the value. Even if you’re using it as a home, you may wish to sell it on at a later date.

Even if a house looks shoddy at first, you may want to consider how much improvement would cost. Many people buy run down homes for cheap and spend the money they saved on fixing it up. You can make a property much more valuable with some fixes around the house and garden!

The location also matters. Go online and find statistics about local amenities. You can also use sites like MyLocalCrime to find out about crimes in the area. Do your research to paint a better picture about the value of your property before investing.