Published On: Wed, Nov 29th, 2017

Alternative Ways To Invest In Property

Alternative Ways To Invest In Property

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Real estate is still a great place to invest your money, but a standard buy-to-let property isn’t the only route to profit. Here are some alternative ways to make money out of the property market.

 

Buy a holiday home

A holiday home works slightly like a buy-to-let property in that your guests are able to pay off the mortgage and potentially result in a profit. The property will need to be in a location that attracts holidaymakers all year round so that you’re always getting paying occupants. Some money will have to go into marketing it and you may need to hire a property manager to look after it if you don’t live nearby, but you could still make a hefty profit despite this if your home in in a popular tourist area. You could even consider buying a place abroad where property prices may be cheaper. On top of all this, you can take a free vacation there yourself whenever you fancy!

 

Build your own home

Building a home is remarkably cheap compared to buying one. Buying the land is the most expensive part, but if you buy in the right area you may be able to get a good deal. Most people building their own home do so to craft the ideal home for themselves, but you could consider building a home that you think other people would want to live in and then selling this for a profit when it’s built. You’ll need to research into the kind of people who buy property in the area so that you can cater to their tastes and you’ll want to keep a tight budget – spend too much and you’ll have to sell for a higher price, losing out on potential buyers.

 

Learn to flip

Flipping is a way of buying property and then selling it quickly afterwards for a higher value. Flipping can be a big risk compared to many other property investments, but could be the speediest way of making a return. It could involve buying a property in an upcoming area and letting the price rise naturally, or it could involve making renovations so that the property is worth more.

 

Invest in property company shares

Rather than buying physical property, you could invest in shares in a property company. These are companies that own lots of real estate and rent them out to make a profit. Look out for companies like Invitation Homes that are selling shares. This can be a simpler hands-off approach to property investment, although could seem like more of a gamble to some.

 

Become your own mortgage lender through peer-to-peer lending

Rather than investing in property, you could make money through lending to other buyers. Many people looking to take out mortgages are finding it harder to do so through conventional mortgage lenders due to high deposits and rigorous credit checking. Many are now using peer-to-peer lending platforms such as Landbay in which they can more easily get mortgage loans by borrowing from other online users. By acting as a lender, you can make money in the long run through interest. You don’t have to offer someone the entire loan – it’s possible to lend part of the loan depending on your budget. This can be an easy way for anyone to make money.

 

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