Best real estate strategies for beginners
Best real estate strategies for beginners
It has to be said that deciding that you want to invest in property for your future financial stability is not one that you will take lightly. Investing in property means you will pay a large chunk of money to make more in the future.
While buying a property for real estate makes sense, it can sometimes be more complicated than you realise, especially if you are a complete beginner to the idea.
To help you on your way, we have put together our guide to the best real estate strategies for beginners, designed to help you work out what you will need to do to kickstart your real estate plans.
Make sure that you build a solid and diverse property portfolio
There is a good chance that you will start with just one property when you are investing, but if things go well, you will want to carry on this investment and build up your portfolio.
Many property investors make the mistake of thinking that because one type of property has worked out well for them, they must stick with it. However, this doesn’t have to be the case. It is much better to think about how you can build a diverse portfolio that offers a range of different property types.
Find out more about HMOs
For many, having singular tenants (or a couple in a property) may make perfect sense, but there may be better ways to make money from a rental property. If you will be able to manage multiple tenants at a time, then why not take a look at HMOs?
The idea of houses of multiple occupancies is that you only have to buy one property but can rent it to several people simultaneously, maximising your income. Specific rules apply to renting out HMOs, so make sure that you learn as much as possible before diving in and renting them out.
Consider whether or not a commercial to a domestic property will work for you.
If you are happy to do some work on your property before it is rented out to tenants, then consider buying a commercial property that can be converted into a domestic one.
These can often be more cost-effective to buy, and whilst they will require lots of work to get them ready for people to live in, they can be a profitable option for you to have in your portfolio.
Try out student renting.
Those living in a university city (or happy to rent out a property outside of where they live) then consider buying a property that can be rented out to students.
This will often work like an HMO, but rather than renting out to separate people who may have different reasons for living in the property, you will be renting out to students looking to live somewhere local to their university while they complete their studies.
Students can be tricky to rent to compared to other tenants, so it is essential to consider whether this will be the right choice for a new landlord.
No matter the strategy you go for, you will want to make sure that you carefully consider your options and that you choose a type that will be the best for you. Not only right now but also in the future too.