This is no doubt that property is the most popular investments in the world. Why it is the most popular investment? This is because it can generate profits for investors from rental income and resale the property. reward investors with high yields on their investment. However, buying a home won’t make you achieve your goal of generating a significant profits. Instead, wise decisions must be made and many aspects must be considered.
Generally, here are 3 ways for property investors to earn a massive return on their property investment.
➊ Making Profit From Rental Income
This is the simplest way to make profit from property investment. It just buying a building and rent it out. It could be an apartment building with numerous tenants, a house with a single tenant, or an office building. However, there are a few possible disadvantages of this type of income which is if you building isn’t occupied then you will not be making any profits. If it is a building with a single tenant, the possibility of vacancy is quite high, whereas that a building with numerous tenants, it would provide less pressure for full occupancy. Therefore, you need not to worry your building is vacant.
Apart from that, not to neglect the property maintenance, you have to be done once a year. The costs of maintenance is depending on your property situation, if there are a lot of things need to be repaired, then the costs surely high. While, if you have do the property maintenance once a year, the costs of maintenance can be very little. (Click here to read more: Step by Step Guide for Renting Out A House)
➋ Making Profit From Increase of Property Value
Another simple way to make a profit from property investment is buying a foreclosed property or in distressed condition, renovate it and sell it out at higher price. Its also called as property flipping. However, this type of income can be a tough proposition as property doesn’t always go up in value, investors may need to take up a minimum 10 years time to wait the increment of property value. This doesn’t mean that an investor ought to never pick this investment strategy, but it does mean that there are a several factors that ought to be considered. (Click here to read: 4 Keys to Buying a Flipped House)
➌ Making Profit From Real Estate Business Operations
Lastly, some property investors are prefer to make profit from real estate business operations. For instance, those investors who own an office building may make profit from vending machines, movie theater owners may make profit from ticket sales and etc. The main key to this type of property investment is ensuring that the investor has the expertise knowledge to maximize profits in a specific sector.
If you are newbie in property investment field, it is advisable to take the #1 investment strategy for your first investment property as its entry cost is minimal compare to the other 2 investment strategies. Once you’ve earn a lot of profit from property investment and have a certain achievements in property investment field, then you can only consider to start out the #3 investment strategy. Always remember, knowledge is primary and never let your impulsiveness to make any decision.
It’s not about property ownership it’s about control! To get more details. Click Here!
Like this article or found it helpful? Share it!
Follow us on Twitter for more news, tips and inspiration. Become our mate on Facebook and explore our Pinterest boards.