Are you an aspiring property investor? If yes then you need to read on. There are many ways to invest in property. You can make money from real estate without risk by flipping properties without actually owning them. Alternatively, you can buy property for rental income or buy run down houses and fix them and sell.
It is always better to decide your focus before you start. Your focus depends upon your capability, the amount of resources available to you, the amount of hard work you are prepared to put in and your ability to take risk. Of course it never hurts to connect with a network of property investment professionals to learn more about investing in property in Australia.
If you know your focus, it will help in deciding the specific teaching course you should take rather than moving in different directions and reaching nowhere. Following are the five property investment areas you can choose from.
One way of investing in property to make profits is buying real estate for earning rental income. Your main focus is on cash flows so that you can pay the monthly payments of the mortgage that you might have created. Over time, you may want to sell the property at a profit as and when it appreciates in value.
You find a rundown property or a property that needs to be fixed. You will have to consider your resources before you actually close a deal. Besides interiors, there may also be a need for major repairs if there is a structural fault. You hire a contractor for the job and take care of the legal problems associated with it such as workmen’s compensation etc.
You find a buyer and sell at a profit after taking into account your initial cost and the cost of repairs. Depending upon your resources and the amount of effort you are able to put in, prudent selection of rehab properties can yield huge profits. However, you may have to restrict yourself to a few properties initially till the time you build up your resources.
This is a high-risk high property investment option. You find a good deal that you think has the potential of appreciating in value. Depending upon market conditions the value may or may not appreciate. Always keep in mind that it is the value of the land that appreciates and not that of the house built on it.
4. Land Deals:
If you have an even bigger appetite for risk, you may buy parcels of land that, according to your assessment, have a potential for significant appreciation. If you have the resources, development of raw land can yield immense profits.
5. Wholesaling Real Estate:
This is a favorite of many property investors. Wholesaling is a no-risk strategy of property investment. Wholesaling real estate is very different from what one normally understands by the term. Unlike wholesalers in other businesses, a real estate wholesaler does not buy or sell properties in bulk. A real estate wholesaler buys single properties and sells to investors after adding profit but at a price that is still below current or expected value.
While in all the other ways you need owned or borrowed capital for use in creation of real estate assets, wholesaling can be done with minimal risk, as it does not involve investing or borrowing money. However, you need to know the key elements or the secrets of how to minimise or totally avoid risk.