Throughout my life I have been very fortunate when it came to buying and selling property. Starting back in the 80s, I have moved home 5 times in my life, each as a result of my work asking me to relocate and each and every time that I sold my property, I was lucky enough to make some huge profits which allowed me to upgrade in the following property.
Once I had retired, I decided that I would look into the property market in order to invest some money and try to turn it into a profitable hobby. Everyone always says that bricks and mortar is the best idea for investment and if you are interested in this as a way to grow your wealth, here are the main ways of making money from residential property.
Many people get into the property business with an idea to solely receive revenues from renting their properties out to tenants. The rental market is very different from house prices and is based upon far more factors, it is for this reason that many people see renting as a better way of bringing in some money. The benefits of renting are that you can receive money each month on your investment and that you can possible get more value for your property over time. The only downside I have found is the management of the property and that is why I use an excellent company specializing in property management corona CA-residents just like myself.
Flipping houses is where you buy a property on the cheap and sell it quickly for a small profit, perhaps giving the property some TLC in the mean time. In order to be good at flipping properties you will need to have an excellent understanding of the market and of properties themselves in terms of structure, layout etc. There is no guarantees in this fast and lose practice and you need to flip many houses to see sizable profits.
Rent and Sell
Th most common practice is to rent the property out whilst you wait for the value of the property to rise sufficiently where you can sell it for a profit. The monthly money which comes your way from tenants can help to keep some cash flow coming back into your bank account and then when the time is right, you can sell for a great price. In order to buy lower than you sell, you need to not only understand the property market in general, you will also need to have the nose to sniff out properties in areas that are on the rise. Very often the cost of housing is dependent on the area and what it offers, as well as the kind of house which you are investing in.
Whichever option you choose, make sure that you do plenty of research before you part with any of your hard earned money.