Alternative Ways To Invest In Property
When investing in property, many people go down the traditional buy-to-let route of renting it out to tenants. However, there are other ways to make money out of property. Here are a few alternative ways to invest in property.
Get into property flipping
Property flipping involves buying a property for a low price, renovating it to add value and then selling it for a profit. It is usually done in a matter of months and there are specialized buy-to-sell mortgages that you can take out to fund these properties. Many people hire contractors to do the renovation work, but those that are DIY savvy may be able to take the entire project on themselves to save money. Flipping is the most popular form of investment after renting.
Rent out commercial property
Rather than renting out property to tenants, you could consider renting out property to businesses. Commercial property could include shops, offices, restaurants and even private medical clinics. Such property can be more expensive but you may not have to do as much hands-on work (maintenance work is often left in the hands of the business leasing the property, saving you the stress and money).
Own a vacation rental
A vacation rental could also be a lucrative form of investment. This involves renting out a property to guests. In order to appeal to people booking a vacation, you’ll need to look for real estate listings in scenic or touristy areas. You’ll also have to make changes to the interior to make it feel like a luxurious vacation rental. It’s possible to outsource a property manager to look after the property for you if it’s not local to you. An advantage of owning a vacation rental is that you can also take a break there whenever you like (providing there are no guests staying there).
Rent out property as storage space
You may also be able to rent out certain types of property as storage space. This includes warehouses and allotments (some people make money by renting out space in their homes as storage such as garages and loft space). Many people use outsourced storage for inherited possessions or for hobbyist gear that they may not be able to fit in your home. There are sites that you can use for renting out space.
Buy property shares
Another way to make money out of property could be to buy shares from a successful property rental company. These companies own a network of accommodation that they rent out to tenants. Taking out shares can help you to share company profits. This could be a way of investing in property without actually having to own physical property.