Contributed post
Any investment you make has risks. However, when it comes to property, the risks can be very low.
Houses are always in high demand, people will always want and need them, and so whether you want to sell or rent them out you’ve usually got some good options.
Renting a property out is particularly good for a long term investment.
If you don’t have the money to buy with cash, you can take out a buy to let mortgage and your tenants rent essentially pays off your property. Then, later when it’s paid off you can sell it or keep renting it out with the money going directly to you.
This can be a fantastic retirement fund or just a way to make passive income.
Here are a few different options for making money with lettings.
Be a Live-In Landlord
Lots of people are in need of just a simple, basic bedroom in a home.
People who work full time and postgraduate students are both examples – the good thing about this is these kinds of people are out most of the day so you’ll hardly even see them.
If you have a clean and quiet home with a room you aren’t using then you have the chance to earn some good money. This could help you to get out of debt, save money or just live more comfortably.
Either way, it goes to show you can make money without property without being a tycoon who owns lots of houses.
Rent Out Your Property and Live Elsewhere
Getting a foot onto the property ladder in the first place is difficult enough, but if you’ve managed to do so and raise a deposit and secure a mortgage – congratulations!
It might seem like the obvious option to live in the home yourself, but you can earn some good money by living elsewhere. If you can live with family for cheap, or rent somewhere significantly cheaper then getting a tenant into your purchased home could be the way to go.
Their rent could cover your mortgage payment, often with money leftover that you can spend as you wish. This is because mortgage payments are usually lower than rental prices.
If your mortgage is £500 a month but you’re renting out the property for £700 for example then it’s a chance to pay it off and earn a little extra too.
If you’re using a letting agent then you will need to factor in the cost of fees, but these aren’t very expensive and there’s still an opportunity to have your property paid off with extra money for you.
Buy a Property Specifically To Rent
If you’re in a position to purchase an additional property purely for investment then it’s a fantastic way to earn yourself extra money.
Choose an area that has a high demand for rental properties to earn yourself the best price – close to towns, cities and universities often do well. The higher demand for rental properties, the higher the monthly rent you are usually able to achieve.