What Type Of Property Makes A Great Investment?
Lots of people still put a lot of faith in the value of bricks and mortar. There must be a good reason why so many of us choose to put our cash into property. Generally speaking, the value of property will rise over a couple of decades. But there is always a risk, as with any investment. And there might be a lot more maintenance of this type of investment involved.
Buildings need to be cared for. There will be ongoing repairs and a continuing need to keep the esthetic appeal of the place up to date. There are ongoing costs too, like insurances and taxes. So why do we still feel that this is a good place to put our money?
Something For Your Family To Live In
Buying a house for you and your family is always an investment worth making. After all, you’ll acquire many wonderful memories over the years in this place. Your children will have somewhere to grow and develop over time. They’ll feel safe and secure, and they’ll gain a sense of belonging to the community. A roof and warmth are the most basic needs for us, so this type of investment ticks all the right boxes. But is it more of an investment in your happiness than a cash cow?
Neighborhoods don’t always stay attractive and desirable. After all, there are plenty of new ones being built all the time. Weather and industry can both threaten your property too. Buying wisely is key. To do that you have to do your homework and make sure you are well informed. Reduce the risk of losses by studying local historical data.
Something For Your Child To Study In
When our kids grow up, education is more important than ever to help secure a brighter future. Studying really is a full-time challenge, though. The last thing you want is for them to have to take on long commutes to college. Halls of residence and other student digs are expensive. Now the cost of the education itself has all but out-priced itself, it’s time to find savings somewhere.
Buying your son or daughter a property they can sublet might be a wise investment at this time in their life. Be wary, though, of this being a short-term requirement on their part. They might move to a completely different state for their first job. What will you do with the property then? Chances are there won’t be much equity in it after just three or four years. Of course, it has served its purpose to provide your child with high quality, secure and safe accommodation. Was that investment enough?
Something For You To Enjoy Vacations In
Most of us look forward to our leave periods. We might book vacations months in advance and fully plan our itinerary. Do you tend to return to the same area year after year? It’s easy to fall in love with an exotic destination, especially when you make so many happy memories there. So should you buy a vacation home?
There are many reasons for investing in something like a Penthouse apartment in your favorite city. It saves you renting and risking not having a desirable accommodation on vacation. It also means you can travel light because you can leave all your clothes and creature comforts there. You might rent it out to other vacationers so you can enjoy a modest income from your investment. A home from home might sound like the stuff of dreams, but it might be quite the investment opportunity.
Something You Can Run A Business From
Buying commercial premises is a lot different. Some buildings can age quickly making them unpopular and unusable for modern business practices. Still, if you have a business up and running, it might make good financial sense for you to own your premises. These prospects need to be discussed with your accountant.
Building a property is different again. You are effectively customizing a plot to suit your business needs. This isn’t always easy to do and can take years before you even move in. Your money is earning nothing in that time. Of course, custom premises carefully designed to meet your requirements could last you for decades.
Something You Can Flip
Many people like the idea of buying a doer-upper. This is a property, usually a house, that has not been maintained or updated for many years. As a starter project, you might seek one that merely requires cosmetic enhancement. When you’ve done the work, you simply place it back on the market for a higher price to reflect the standard of the property now. As your DIY skills improve, you might take on renovations and remodeling. The more you do yourself, the bigger the profit.
Of course, this easily becomes a full-time job for you. This might not be your desired lifestyle right now. You might choose to pay contractors to tackle the work, but this will cut into your profits.
Something That Makes You A Landlord
Another way to earn a steady income from a property investment is to become a landlord. It is often easier to acquire a mortgage for this purpose as the property itself provides you with the means to pay the loan. In some places, you might be subject to higher purchase taxes for second and subsequent properties. There are also ongoing costs that might be required by law.
Consider the insurances and maintenance bills you will accrue for this type of property or business. You might add these to the rent you charge. But what happens if your tenant stops paying or simply moves out? You need to be quite savvy with your marketing to attract good tenants, and you need to pay for checks to ensure they can pay.
Property investments will probably continue to be an attractive proposition for many. You will be at ease on automatically transferring your property through a well-constructed quitclaim deed to the next generation in your family when you finally found the home that fit in to your list. Would you invest in property for the long or short-term?