A relatively stable investment for many years has been real estate and for those who can afford it, it's been considered as a long-term yet profitable investment. There are several types of real estate investments that can make money.
In residential real estate, your options include buying to rent, buying to improve and sell, or if the market is right, buying to turn a profitable and quick sale. While your tenants actually pay off the mortgage, renting a property can be a good option for you to acquire a second home. Maintenance as well as repairs will have to be covered by the rent otherwise you will end up out of pocket. You will have to be on call for the tenants if you are a landlord and you also need to be prepared to handle rent collections.
If you have the money, then a tidy profit can be the result of buying a rundown property in a good area and fixing it up. A lot of people cannot afford to maintain their homes during these difficult economic times. Often put in the market at less than their market value are those homes. You can pick up a bargain, but in order to turn a profit, you will have to fix up the home before selling it. You will need to understand the costs that are involved in returning a home to its previous glory if you are interested in the fixer-upper market and how much you can make on the sale of the home once it has been fixed up will be affected by the market conditions.
A new estate or apartment building would often offer properties at prices that are exceptionally good. Buying into the first phase of a new property development can allow you to turn a profit when you sell at a later stage. What many property investors would do is buy into a development early then wait for it to sell out and become popular before they will sell it and net a profit. You must however be able to make the initial investment and wait for the right market conditions.
If you buy an office building, a factory, or any commercial property, then the same will apply. To other businesses, you can rent retail properties, office buildings, and industrial buildings. The buy-to-fix-up concept seldom applies to commercial properties because maintaining these larger buildings can be costly. If you are considering buying a commercial property, a property management company will be better equipped to handle the maintenance and management for you while still allowing you to make money from your investment.
A relatively stable investment is real estate especially if you are willing to wait for the market to recover before you consider and try to make a profit. You must be sure that you can make your money back before you become over-invested and in trouble yourself because buying a second or third property is a risky business.
In residential real estate, your options include buying to rent, buying to improve and sell, or if the market is right, buying to turn a profitable and quick sale. While your tenants actually pay off the mortgage, renting a property can be a good option for you to acquire a second home. Maintenance as well as repairs will have to be covered by the rent otherwise you will end up out of pocket. You will have to be on call for the tenants if you are a landlord and you also need to be prepared to handle rent collections.
If you have the money, then a tidy profit can be the result of buying a rundown property in a good area and fixing it up. A lot of people cannot afford to maintain their homes during these difficult economic times. Often put in the market at less than their market value are those homes. You can pick up a bargain, but in order to turn a profit, you will have to fix up the home before selling it. You will need to understand the costs that are involved in returning a home to its previous glory if you are interested in the fixer-upper market and how much you can make on the sale of the home once it has been fixed up will be affected by the market conditions.
A new estate or apartment building would often offer properties at prices that are exceptionally good. Buying into the first phase of a new property development can allow you to turn a profit when you sell at a later stage. What many property investors would do is buy into a development early then wait for it to sell out and become popular before they will sell it and net a profit. You must however be able to make the initial investment and wait for the right market conditions.
If you buy an office building, a factory, or any commercial property, then the same will apply. To other businesses, you can rent retail properties, office buildings, and industrial buildings. The buy-to-fix-up concept seldom applies to commercial properties because maintaining these larger buildings can be costly. If you are considering buying a commercial property, a property management company will be better equipped to handle the maintenance and management for you while still allowing you to make money from your investment.
A relatively stable investment is real estate especially if you are willing to wait for the market to recover before you consider and try to make a profit. You must be sure that you can make your money back before you become over-invested and in trouble yourself because buying a second or third property is a risky business.
About the Author:
Jewelry designer and artist Caroline Jasper creates one-of-a-kind genuine gemstone jewelry - each piece handcrafted by an artisan.
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