There’s one thing that the financial crisis of 2008 showed many people – property is a safe bet for your money and doesn’t suddenly vanish the way that shares and investments can do. Whether you are buying your first home, want to invest some cash into your property or make extra cash with your property, having a house is a perfect starting place.
Why people invest in property
If you look at the truly wealthy people out there, many of them have huge property portfolios – houses, commercial property, even land. While this might not be an option for many of us, there’s no reason that we can’t make the most of our home. Your home is your biggest, and best asset and itself is a guarantee of money if you ever need to sell it. And it is easy to understand how much a property is worth with a simple valuation – there are no complicated formulas to work out the value of a house!
Then there are all the other ways you can increase that value or make more money from the house. Don’t forget that if you are going to invest in your property that you have a financial health check before you commit to anything to ensure you can afford it. And if you start making extra money from your property, hire a good accountant to help you keep track of it and ensure you may any taxes to avoid an unpleasant HMRC visitor.
How to make money from your home
Even if you are a first-time buyer who has just got their foot on the property ladder, you already have a means to make more money. However, even if you never do a thing with your property, you know you always have something that is worth real money. This is why property is often described as ‘recession proof’ and why many investors buy houses and commercial buildings rather than shares.
There are also a variety of different ways to rent out your home. One of the most popular options at the moment is to rent out a room to a lodger or even get involved with a scheme like Airbnb, where a spare bedroom in your home because a tiny hotel for guests to stay in for a time. Of course, if you find yourself in the position where the house is unoccupied, then you can turn it into a full time rental property and the rent received from tenants will often pay the rent and make you a profit. Then at some point, the house will be paid for and you can sell it for a complete profit.
Investing money into your home
If you find yourself with some money to use, you might consider investing it into your home. Say you have a little place in the country with a little extra land around it – you might want to consider extending your home with that cash and making a three bedroom into a four bedroom. Or you might want to add extra features to the property that will add to its value and give you more enjoyment as well.