The US housing market has continued to show strong growth throughout the pandemic as increased numbers of people look to renovate, fix and flip, or simply buy bigger. It is a trend set to continue as the government stimulus packages, low interest rates and a limited number of properties have meant a huge increase in house values across the country. Whether to diversify current investments or to start an investment portfolio, property is still one of the best options. This article will look at how to get started and provide some insights as to this process.
The options for property investment
There are innumerable options to invest in property and the ideas noted below are the three main themes or areas within which your investment can fall depending on what it is you want to do and your access to available funds.
Fix and flip investment properties
The idea here is to buy a property that can be renovated and sold on for a profit. You can buy properties at auction or simply look for dilapidated properties in high demand areas. You will need to secure funding for this and one of the best pieces of advice is to look at the whole of the finance market to find the appropriate solution for your needs. There are highly recommended private money lenders who specialize in this type of finance and who will be a good starting place. They will also likely provide the finance as required in a fraction of the time as compared to the traditional finance companies and banks.
Buy shares in a managed property portfolio
This is where you may currently have access to funds, which can then be used to buy one-off shares in a managed property portfolio. You won’t need to borrow or find a loan, but you will only be able to invest what you have and then make a sustainable ongoing contribution to continue buying shares. This is the best way to invest in property without actually buying a house or having to repaint or maintain anything. Keep in mind that the value of the properties held in the portfolio can rise and fall and as such is never guaranteed to give you back your money. Reading and research are key to your success and professional investment advice is always a good option.
Buy to let
Buy a property or flat specifically to let out to others. It must be in an area that will achieve the required rental amount. Furthermore, the rental must cover all the costs for this to be a true investment option. The levies, taxes, maintenance and rental agent fees should all be covered in the rent or cover the bond payments for the purchase loan.
These are but a few of the possibilities that exist to allow you, as an individual or business to get involved in the real estate market and perhaps make a profit from the ongoing boom in prices.