Do you wish sometimes, investment advisors will slow down on their pitch to answer some of your pressing questions on how to grow your income with your house?
You are not alone, some of our prospects have shared this with us, so here we are with one Frequently Asked Question:
How do I make more money with my residential property?
Real estate presents diverse investment opportunities that guarantee solid ROIs in the short term and long term, including on residential property.
Simply put, when you invest in a residential property, (a property specifically for living), you can also earn returns from it.
However, there’s a big but, you must have the requisite knowledge and guidance. First off, be sure not to do this out of desperation or ignorance.
In no particular order, here are some of the most profitable options for an investor:
House Flipping: This is when you invest in a home, not to live in it, but to trade it off at a higher price, that’s the flip part. If you are one to watch real estate reality shows, you’ll see that house flipping has become trendy, investors transform a home from an eyesore to an incredible home. But it’s not as easy as it looks on TV. House flipping can mean both investing in a property and selling it at a higher rate than you invested after some time has passed or doing a fixer-upper first then selling it afterwards. Whichever route you take the idea is to buy low and sell high.
Rental Property: Easily the most common real estate investment option and maybe the oldest. In rentals, you put your residential property up for monthly, yearly rental. It does have its upsides and downsides. A big plus is that it’s a steady income source, in addition to asset appreciation, and eventually house flipping. Downsides are: managing tenants, for some it’s a hassle, vacancies mean no income, properties in hot zones are more sought after than others, so there’s the possibility of investing without returns due to the unavailability of interested tenants. Nonetheless, rental property investment is a smart plan to ensure recurrent ROI. Don’t forget landlords make money in their sleep.
Property Development: Now this is the most capital intensive of them all, but sometimes with big risks come big rewards. This involves investing in land, erecting residential properties, then selling them off at really high profit margins. In terms of profit, think double or triple your investment amount. A major challenge besides the huge capital demand is also the consideration of a quality location.
As promising as these options are, before you venture into them, it’s advisable to do thorough research, ask questions, surround yourself with the right people and know the property laws.
At this juncture, if you are really committed to expanding your investment portfolio to include quality real estate investment, don’t you think it would be best to have an investment advisor discuss these options with you and guide you?