You often hear about people making good money from property but how are these people making that money? More importantly can anyone do it or do you need lots of money to start with? In this article we will take a look at how to make money from property.
How to make money from property
For a lot of people the dream of giving up their job to work for themselves seems far out of reach. But for a lot of others it is a reality. Often people look for new ways to make money that don’t require working the usual 9 to 5. Side hustles such as becoming a reseller or making money from matched betting can make you a decent amount of money each month. But if that’s not your cup of tea then maybe getting into property would work for you.
When we think of making a career in property there are 2 main ways to make money. One way is buying property to sell on for a profit and the other way is to become a landlord.
Becoming a landlord (or landlady)
Becoming a landlord sounds like a great way to make money doesn’t it? You buy a property and charge renters to live in that property. Sounds easy right? Although the concept is simple there is more to consider.
When buying a property you need to first ensure the place is liveable. If not then you need to make the property liveable. Usually that would just mean a lick of paint and ensuring gas, electricity etc are all safe and in good condition.
The next thing to consider is insurance as a landlord, you don’t legally need landlord insurance but it is a very wise idea to get some. If anything happens to the property or the renters while in the property then you will need to cover yourself.
The biggest thing to consider is how you will pay for the property. It’s most likely that you will need a buy to let mortgage. If so you will need a decent sized deposit to put down first.
Buying property to sell on for a profit
Alternatively you could make money by buying run down houses for a very low price and then do it up and sell it on for a profit. If you’re pretty handy or you know a lot of people that can help you in the trade then this may be the better option for you.
This option requires a lot of hard work and perseverance. Whereas with becoming a landlord you take care of the upkeep of a property. When you buy property to sell on you will be doing the big work over and over get with each property.
Neither way is easier but I see renting as more of a long term commitment with long term lower income. And buying to sell as more of a short term, short commitment higher payout. Either way it’s incredibly important that you look into every inch of what you want to achieve and get some expert opinions.
This is a collaborative post.