You would be hard pressed to find someone who didn’t want to make at least a bit more money. On that note, you would probably be hard pressed to find someone who doesn’t have at least a small desire to be extremely wealthy. Of course this isn’t a bad thing as who can blame us? More wealth means more money to spend on the things we love. However, simply wanting wealth doesn’t actually accumulate it and even working a 9-5 job may not yield the result you’re looking for. This is why those who are looking to make the big bucks oftentimes dabble in the real estate world.
Depending on where you look, it’s not uncommon for houses to be priced well over 1 million dollars. If you were to invest in such a home, making a return of even 1% nets you a noteworthy $10,000 dollars. Scale that up dramatically and it’s easy to see why people like Donald Trump are so wealthy.
However, as with any other investing venture, making sure you know your material is very important. Though real estate isn’t as risky as investing in the stock market, it very well can be. Buying a condo in the Sophia Hills of Singapore when you don’t have enough money coming in to cover the mortgage while waiting for a renter, for example, is a poor idea.
Go Where There’s Demand
Much like any other business, investing in real estate where there is demand for real estate is the key to making money in this industry. A good way to gauge this is taking a look at the population of an area over the years. If the population is constantly on the decline, perhaps investing in real estate there isn’t the best idea. Alternatively, getting the insider scoop that a new university is being built and investing in a few apartments in the surrounding areas is a great idea. Use common sense and never jump on a deal before doing your research.
Fix Up And Sell
Fixing up and selling houses is a practice that can be very profitable if done right. For example, if you find a great deal on a home that has outdated appliances, poor landscaping and obsolete windows and doors, hop on it. All you need to do here to turn a hefty profit is update these components and turn around and sell it. Of course, if you get a good deal on a house, there is a chance that the real estate market in that area is poor thus making it an unwise investment. This is why, again, doing your research and looking at past market conditions is very important.
Buying to Rent
Fixing up and selling houses can net you a nice one-time profit but investing in real estate to rent it out can be an even better option. When you own a house and rent it out you have money coming in at all times – provided you can find a renter. Though buying a house outright will obviously net you a profit much faster, buying with a mortgage is an option too. In fact, it’s not unheard of for a renter to completely cover mortgage costs making this a great option for many.
It may seem that you won’t make much money by renting, but that is far from the truth. Yes, you won’t be making a huge profit off a simple family house in most suburbs, but if you buy a luxurious destination you can turn an incredible profit.