How to make money during a property slump
The property market is just about hanging in there at the moment, hopefully springing back to life by the end of the year.
There will obviously be areas that will escape from the turbulence and remain relatively unscathed. These more stable areas tend to be central London and the surrounding areas. There is little doubt that top quality homes in the more exclusive areas will come out on top. These areas tend to house those who are more resistant to the credit crunch. There are very few of these homes coming on to the market so demand is high. In other areas prices are slipping due to the vast amount of properties up for sale, and the reduction in demand.
There are plenty of opportunities to grab a bargain right now and if you want to earn extra cash you should read on. Below is a top ten list of great ways to make money during a property slump.
1. Grab yourself a bargain!
Become Sherlock Holmes, find out why your sellers are selling. If they are separating, it could mean a quick reduced sale. It may be that a property has been up for sale for a very long time, they may be pleased to accept a reduced offer.
2. Become a landlord
Consider buying a property in a fashionable area where, for instance, there are lots of young professionals.
3. Rent out your garage
You could earn a good few hundred pounds a year with such an arrangement. If parking is severely limited in your area, it could add up to even more!
4. Become a developer
Purchase a wreck at auction, do up as quickly and as cheaply as possible, and sell on for a profit!
5. Invest in the holiday let market
There are plenty of opportunities right now to pick up a second home at a reduced price thanks to recent falls in property prices. Buy somewhere that is sought after by holiday makers.
6. Buy a house ready to go
Purchase the show home. These properties are completely finished and are usually complete with excellent fixtures and fittings. Some developers take offers on these properties early on. Due to the fact that these homes have been 'used' they are often sold at a slightly reduced price.
7. Build it yourself!
You will need considerable fortitude to see this through; however this option could add up to 20% on top of build costs. After buying the plot, check that you can get a mortgage (if needed). You must also have planning permission to build your home.
8. Divide up your home!
If you live in a large property, you could separate it into individual flats or bedsits. Always check you are adhering to the guidelines necessary for becoming a landlord.
9. Extend your home
This is a quick way to increase your homes value. You can create more space by adding an extension, and although there will be costs involved, ultimately it will bring in good returns.
10. Convert your home in to a bed and breakfast
Your home will have to be big enough to accommodate your customers and also, most people will expect there room to have an en suite bathroom. Bed and breakfasts are strictly regulated and there are specific guidelines on what is expected. In order to meet the terms, you may have to do considerable renovations, although financially it could be worth it in the end.
The property market is just about hanging in there at the moment, hopefully springing back to life by the end of the year.
There will obviously be areas that will escape from the turbulence and remain relatively unscathed. These more stable areas tend to be central London and the surrounding areas. There is little doubt that top quality homes in the more exclusive areas will come out on top. These areas tend to house those who are more resistant to the credit crunch. There are very few of these homes coming on to the market so demand is high. In other areas prices are slipping due to the vast amount of properties up for sale, and the reduction in demand.
There are plenty of opportunities to grab a bargain right now and if you want to earn extra cash you should read on. Below is a top ten list of great ways to make money during a property slump.
1. Grab yourself a bargain!
Become Sherlock Holmes, find out why your sellers are selling. If they are separating, it could mean a quick reduced sale. It may be that a property has been up for sale for a very long time, they may be pleased to accept a reduced offer.
2. Become a landlord
Consider buying a property in a fashionable area where, for instance, there are lots of young professionals.
3. Rent out your garage
You could earn a good few hundred pounds a year with such an arrangement. If parking is severely limited in your area, it could add up to even more!
4. Become a developer
Purchase a wreck at auction, do up as quickly and as cheaply as possible, and sell on for a profit!
5. Invest in the holiday let market
There are plenty of opportunities right now to pick up a second home at a reduced price thanks to recent falls in property prices. Buy somewhere that is sought after by holiday makers.
6. Buy a house ready to go
Purchase the show home. These properties are completely finished and are usually complete with excellent fixtures and fittings. Some developers take offers on these properties early on. Due to the fact that these homes have been 'used' they are often sold at a slightly reduced price.
7. Build it yourself!
You will need considerable fortitude to see this through; however this option could add up to 20% on top of build costs. After buying the plot, check that you can get a mortgage (if needed). You must also have planning permission to build your home.
8. Divide up your home!
If you live in a large property, you could separate it into individual flats or bedsits. Always check you are adhering to the guidelines necessary for becoming a landlord.
9. Extend your home
This is a quick way to increase your homes value. You can create more space by adding an extension, and although there will be costs involved, ultimately it will bring in good returns.
10. Convert your home in to a bed and breakfast
Your home will have to be big enough to accommodate your customers and also, most people will expect there room to have an en suite bathroom. Bed and breakfasts are strictly regulated and there are specific guidelines on what is expected. In order to meet the terms, you may have to do considerable renovations, although financially it could be worth it in the end.
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