This is a contributed post
This blog is all about making extra money. But every now and then, some of us are lucky enough to come into some money that we weren’t expecting.
It could be due to an inheritance, or an unexpectedly large dividend but when we have more money than we expected it can be difficult to ascertain the best way to put it to good use. We could spend it, we could save it, or we could find a way to grow it… Or of course you could do a little of all three.
Since this is a money making blog, it stands to reason that we might want to make some money from our money, but this presents a minefield in and of itself. Do we put it into the stock market? Sure, this could bring some impressive yield, but the risks are high if you don’t have at least a passing knowledge of the markets. Do we invest in cryptocurrency? Again, this can be profitable but the value of cryptocurrencies fluctuates quite wildly. It seems that if you want to grow your money, property is still the way to go.
If you want to make money (reasonably) quickly from property, you may want to seize a cheap property and flip it for a profit. Many have made money this way, but if it were easy… Everybody would be doing it. Here are some important points to bear in mind if you expect to make money from flipping a property…
Know the local market
You can’t hope to make money on a property without a clear idea of its intrinsic value as sold. While you’ll do everything you can to raise that value, you want to get as much as possible out of your initial investment before you start adding all the bells and whistles that will make up the lion’s share of your profits. You should take the time to learn the value of comparable properties in the area. Research the municipality and look at what kind of people are moving to the area. Look at how the local council will be investing to see if the area in question is ripe for gentrification.
Know the property inside out before you invest
Even more important than knowing the area in which you plan to invest is knowing the property itself. The last thing you want is any unpleasant surprises lurking beneath the surface which could significantly increase your investment and eat into your profit margin. Get a surveyor like Allcott Associates Surveyors to give the property a thorough investigation before you commit. If a property is on the market at well below the average market value, there’s probably a good reason.
Know where to invest to get the most return
While any renovation you make is likely to increase the property’s resale or rental value, not all renovations are equal. Some present a much greater return on your investment than others and unless you intend to live in the property (in which case you’ll glean personal value from every renovation), it’s a good idea to invest in areas where you’ll get the most return. Loft conversions and conservatories are large investments but among the best money makers. If your budget is more limited, however, you can’t go wrong with reworking the kitchen or bathroom.