If you want some help getting on the property investment ladder then you have come to the right place. This guide will help you to understand the property options you have so you can go on to make choices that benefit you for years to come.
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Rental Properties
Owning a rental property is a very good way for you to secure your place on the property ladder. Even though you can get finance with a very low down payment, you do need to make sure that you have enough cash to hand so you can cover upfront maintenance, and so you can cover periods when your property may not have any tenants. If you have tenants who do not pay their rent then this would be another big issue. On the plus side, when you do have a property that is bringing in cash, you can then use this to try and get access to additional income streams from multiple properties. This helps to offset the unexpected costs and losses that might come with new income.
House Flipping
Another option that you have, that you should certainly look into, would be house flipping. If you have a lot of experience with house flipping then this is great, but ultimately it is a good way for you to turn a profit. Real estate flippers often try to sell their undervalued properties within six months. If you believe that you can do this then you will soon find that it is easier for you to not only make a profit but for you to also make sure that you can get the money you need to make even more investments down the line. If you want to get into this then you need to take the time to understand stamp duty changes and any other updates to the property sector. If you can do this then you will soon find that it is easier for you to not only get the result you need but to also make sure that you understand the total cost involved, as it’s not just the price of your property that you have to pay.
REITS
A REIT is best for people who want portfolio exposure to real estate, but at the same time, don’t want to worry about making a real estate transaction. A REIT is essentially when a corporation or a trust uses someone else’s money to operate income properties. You can sell these on the stock market just like you can other properties. There are some things that you have to do here to maintain REIT status but at the end of the day, it’s worth looking into.
So as you can see, it’s very easy for you to get a head start on the property investment ladder, and if you follow this guide, you will soon find that it is easier than ever for you to get the result you need, without compromising your budget. Why not see if you can get on the ladder today?
