When you think about your monthly budget, some non-negotiables take priority: mortgage, food, utility bills, insurances and your kids education. However, once you have accounted for these necessities, you may find yourself in the fortunate position of having some spare cash. If you are financially astute, you may park this money in a savings account to accrue over time. This is the safest option and requires minimal risk on your part. However, as your cash begins to stack up, you may find yourself wondering whether your increasing stacks of cash are working in the most effective way for you.

One major alternative to a regular savings account with a bank is to test your resolve on the property market. Investing in bricks and mortar has paid dividends for many over the past few decades. Lucrative returns can be had in the short term if you are quickly flipping a house, and also in the long term, if you are building up a rental portfolio. Take a look at these tips to help you decide the sort of property investment that you may be tempted to make.

Research Like You Have Never Researched Before

Although you may be impatient to see some of your hard earned money invested in the realm of property, it’s vital that you understand the styles of property that are in demand. If you are thinking of purchasing an inner city dwelling, the chances are that apartments and penthouses will cater for the needs of young professionals, with their lack of gardens and low maintenance requirements. If you are opting for the land of suburbia, you may want to consider larger townhouses and condos that will accommodate wealthy families, that are spacious and located within highly regarded zip codes.

If you are tempted to try your hand at purchasing a property to renovate and sell on quickly, ensure that you purchase the worst house on the best street and not the other way around. You can always alter a property by bringing in a team of tradespeople and renovating it, but you can never upgrade where it is.

The Rental Option

If you are going to dabble in the property market for the long haul, you may wish to let your investment. You’ll need to do your homework and make sure that the rent you receive each month covers the mtal-ortgage that you have taken out to purchase the property. Try and buy somewhere close to other rental properties. You may want to look at a location close to a university to attract students or a hospital that may appeal to doctors or nurses working nearby. If your property is close to good transport links and is easily accessible, it will appeal to more potential tenants.

You may be worried that you could end up leasing your freshly painted and coiffed property to nightmare tenants who refuse to pay their rent resulting in you getting into financial difficulties. Don’t worry. Use a credit referencing agency if vetting your tenants yourself or pass this responsibility over to a specialist letting agent who’ll take care of it all. For a small percentage of the rent each month they will manage your property, take care of maintenance issues and deal with any problems as and when they arise.

Investing In Property For Your Family

You may disregard the idea of flipping or letting a property altogether. Instead, you may be keen to upgrade your current home and take a few extra leaps up the property ladder. You might even be keen to build your very own dream home totally bespoke to your family. You could opt for an eco-home, a waterfront property or one of the many mansions designed by Playoust Churcher. The architect you choose will create your dream home designed and built specifically for you. By investing in property this way, you are enjoying the fruits of your money, as well as ensuring that you have a humble abode that will increase in value if you come to sell it at any point in the future.

If you have extra money each month, you can, of course, build up your savings for a rainy day. However, if you want to see greater returns on your investment, it pays to consider either purchasing a second property to rent or to flip and sell on quickly. You could also think about building your own dream dwelling. You never know, if you clue yourself up on potential locations, housing types and property market forecasts, you could be at the embryonic stages of forming your very own property empire.

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Everyone wants to make money in the real estate business but for every billionaire property magnate there are a dozen bankrupt chancers sitting in motel rooms wondering what they Hell happened. Investing in a property as an absentee landlord is one thing, but going from renting out of flipping one property to growing a portfolio of properties is a huge and expensive transition that carried with it a certain amount of risk. Buy hey, if it was easy, everybody would be doing it!

Buying property for investment is very different from buying a home and it requires a different set of skills and priorities. While neither a seasoned investor or someone looking for a new home wants to buy a turkey, the more you invest, the smarter you need to be. Here are some important things to consider when building your property portfolio…

Focus and strategize

When you’re just starting out, your investment strategy will be something along the lines of ‘buy property’ but buying indiscriminately is the surest way to a loss. When your portfolio grows, however, you need to think a little harder about when and where you buy. Do you want to buy properties, renovate them and let them out while you live off the passive income or would you prefer to buy and flip them, maximizing the profits and reinvesting your capital in your next project? These will determine the types of property you buy and their location.

Diversify

A portfolio that’s richly diverse in terms of property type and location has a great chance of longevity and profitability. Investing heavily in hip, upcoming area is a great strategy since rental demand will be consistently high and your yield will tend to grow but you run the risk of keeping all of your eggs in one basket. If something happens to compromise the value of property in any given area, though, this can create huge problems for you. Thus it’s a good idea to hedge your bets by investing in a variety of different locations, even if they are similar properties to those in areas where you’ve already invested.

Don’t be afraid to refinance

Making money in property involves considerable and ongoing investment. While you need capital to acquire new property, you also need to have sufficient liquidity to manage your properties in terms of maintenance fees, ground rent and other fees not paid directly by the tenant. It’s important to be able to move quickly in the property game and having all your cash tied up in your investments can cause you to miss golden opportunities when they present themselves. Strategic refinancing can allow you to expand your portfolio, thus generating more revenue from rental income which means more disposable income for you!

Be prepared to let go of a dud investment

Investors can very often be their own worst enemies by obstinately clinging to properties that just aren’t working for them. Every now and then you may need to bite the bullet and take an up front loss. While a bitter pill to swallow, it’s far better than missing out on more opportunities because you’re shovelling all your capital into a money pit.

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Every standard investment advice consists of making a big purchase in the shape of a house, as it’s generally viewed as one of the best ways to get a good return, or if you ask for another item to invest in, most people will say get another property! But are there other options for investment that don’t involve four walls and a roof? Well, surprisingly enough, there are!

Precious Metals

Precious metals like gold are considered to be quite controversial assets. Some people see them as a no-brainer and are a foolproof investment, and while others may view them as a nightmare, the fact is that the truth is neither here nor there, but they are responsive to certain market conditions. Precious metals appear to gain value when the dollar is weak, and then weaken when the dollar is strong in value. However, this is not an exact science. And of course, we don’t know when this will occur, so it’s best to have some precious metals available at all times. The great thing about items like gold bullion is that you can purchase them and keep them safely at home.

A Boat

A lot of people would consider a boat to be a terrible investment. However, this is largely due to the upkeep and maintenance of the boat. The financing alone can be crippling, but there are sites like boatfinancing.co that can show you the best options for getting a loan to purchase a boat. As time goes on, and the concerns about rising water levels and the threat of natural disaster at every corner, it would be very sensible to own a boat. So not only is it a sensible investment right now, but it’s something that is going to be highly desirable in the coming years.

Peer To Peer Lending

As a way to remove the middleman out of the equation, this is a great way to get a higher rate of return. It benefits both sides, the investor, and the borrower, as the borrower gets a lower rate. Many organizations specialize in peer to peer lending, such as ratesetter.com, but there are plenty of other peer to peer lending platforms that have a decent return on investment, you just need to look for them. But you need to beware that with certain lending platforms, you may be required to invest more than $50!

Wine

Yes, believe it or not, wine is a great product to invest in because it can increase in value as it ages. With the right type of vintages, these can be highly sought after, and you can make a decent amount of money. Of course, to make the most out of this investment, you need to have a good understanding of wine generally, but you also need a room to store them in that is temperature-controlled. To get a substantial profit from your wine, you will also need to buy in bulk. In addition, you need to keep notes of when you bought certain vintages and where from, as these are vital trinkets of information to wine connoisseurs.

You see? There are more investment ideas than a house. So take some of these ideas on board and start investing!

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For many people who have the funds available, buying a second property is the ideal way to channel their money effectively. But before you get swept away with the amount of rental money that will provide a boost to your earnings or the funds that you will make from renovating it, you should think about all the other costs and factors that are not so apparent. To give you a helping hand, here are a few of the main things that you should consider before taking the plunge and buying that property.

Create a Clear Plan

First of all, you need to have a clear idea in your mind about what you are actually going to do with the property as this will massively influence your overall decision. If you are planning on renting it, you need to choose a place that is an attractive place to live for your target renters – whether they are students, young professionals or families. If you are planning on selling the place, you need to carefully do your sums so you identify a property that can be renovated for a good cost, while still providing you with a healthy return on your investment.

Select a Good Location

Just like choosing your own house to live in, location is everything. We have already talked about how this could affect renters, but you also need to consider how easy it is to get to your new home. This is especially important if you are planning on taking a ‘hands on’ role in the rental or development. If this is not the case, it may not be so much of an issue, but you still need to choose a location that is going to be appealing for people. Also, consider whether you will be buying land with the property as well – check out this guide for more info about house and land packages. Consider all factors including public transport links, proximity to schools and other facilities and the type of neighbourhood it is.

Budget for Unforeseen Costs

Any sort of big investment like this has the potential for unforeseen costs. Aside from the mortgage and taxes, you should also think about maintenance costs, which will play a major role regardless of whether you are planning on renting the place out or selling it on. Decoration and repair bills should all be factored in as well. Many first-time investors fall into the trap of underestimating how much it will be to get their new property up to code, so make sure that this doesn’t happen to you.

Plan Your Involvement

Decide whether you will be heavily involved in all aspects of the project or whether you will be leaving the job to external agencies. If it is the latter, you need to make sure that you choose some organisations that you trust to handle any issues along the way. Personal recommendations are always going to be the best way of ensuring you have the right people for the job. Each approach has its pros and cons, so make sure that you are fully aware of all of these before committing either way.

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Buying a home is one of the most monumental moments of any adult’s life. It is the chance for a new start, to take control of your lifestyle and independence, and have the opportunity to start a family with the one you love. On the flip side, buying a house can be the most stressful, time-consuming and costly affairs of your life.

We all know about the major costs of purchasing a property, with the deposit and the mortgage, as well as forking out for furniture for your new home at the top of the list. But there are some unforeseen costs which nobody tells you about until you are already part-way through the process, today we are going to take a look at these hidden costs. It might make you have to rethink whether you can afford to put an offer on the house right now. If you are worried about the down payment on a house, you can always check out this article to let you know how much you should pay.

Attorney’s Fees

The first kicker when it comes to buying a house is the attorney’s fees. You will have already searched for a home, gone for viewings, put an offer in and been accepted before these charges become apparent. It all depends on where you go. There are tonnes of lawyers to go to when you are looking to buy a property, and the fees are relatively standard. However, you can still shop around to find the lowest cost if you like, however, sometimes the lower price is reflected in the service you receive. Consider asking friends and family who they chose and work from there. You may find that the result is a little more pricey, but if you can work with a company that is trustworthy, it is worth the extra cash.

Home Buyer’s Report

When you apply for a mortgage, the lender will ask you to complete a home buyer’s report to check the house for any faults and damage. If the home you are looking to purchase fails the report, the house cannot legally be sold, and you will have to find something else. Although it is an annoyance, it’s in your best interests to have this because it prevents you from buying a damaged property and having to pay out for repairs.

Repairs

If the home buyer’s report passes but comes back with a few minor faults, these are extra costs you will have to consider once you move in. You may have to replace the boiler, make sure windows are double glazed, or tile the roof, which will add to your expenses.

If you don’t opt for a full survey to be carried out, once you move into the property you may be faced with repairs that you weren’t aware of previously. For this reason, it is recommended to get a full survey on any house over 100 years old. If not, you can opt for a slightly less in-depth survey which will still give you information about the inside of the property.

Stamp Duty

Stamp Duty is one of those niggling little costs that only creep up when you receive your contract. Stamp Duty is land tax, which everyone has to pay on their property upon purchase. The tax will range depending on the size and location of the house but is worked out as a percentage of the value of your home. You can calculate it here.

Home Insurance

Home Insurance must be put into place from the data you exchange contracts, meaning that even if you don;t move in on your exchange date, you are already paying home insurance on your property. Paying for your home insurance ahead of moving in is a minor annoyance, however, is essential to secure the safety of your home.

Temporary Accommodation

If you aren’t lucky enough to be living with parents or friends as you go through the moving process, you must think about the cost of your current accommodation. Whether that be your current mortgage or rent, it can eat away at your savings.

Storage Costs

Many people like to start building a collection of items for when they move into a home. You could be beginning to stock up on furniture, appliances, kitchen utensils or towels- but you will need somewhere to store them all. Hiring out a storage unit is a great way to relieve the stress of moving everything from one property to the next, because it will all be in one single location ready to go. However, if you face unforeseen difficulties with your purchase which slow down the process, such as probate or environmental issues, you may have to hire out the unit for a longer period.

Moving Costs

Finally, the day has come where you’ve got the keys to your new home, and you can begin to move everything in. Unless you or a family member have a van you can borrow, you may have to fork out for a moving truck or rent a van for a couple of days to move everything into your home. It can be a long process, but once you have settled, it’s worth it. Shop around to find the best value hire companies in your area.

Random House Costs

Once you’ve moved into your new property, you will be faced with some bills. You will have a few different costs to think about when setting up your home. First up, electricity, gas, and water. Usually, when you take on a property from its previous owner, you can simply transfer the existing setup to yourself- freeing up some time trying to hunt for a new deal. You can, of course, set up your own, and this will involve comparing companies and packages with what suits you. The same goes for broadband, tv, and phones. You may want to set up a package deal with all of these thing included at a discounted rate. It’s up to your personal preference and needs.

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