If you’re struggling to see the benefits of watching your hard earned cash accrue minimal interest within a savings account, you’re not alone. Thousands of people each year become so sick and tired of seeing their savings wallow rather than work aggressively, that they remove their nest egg and invest it into a more lucrative proposition. The world of bricks and mortar has always been a fruitful one for people who are keen to see their money work for them in the most effective way possible. Unlike Forex trading or stocks and shares, the property realm is seen as less risky yet still lucrative. Take a look at how you can take a leap into the world of property and see your nest egg grow.
Location, Location, Location
The old adage that location is more important than the actual property itself is true especially when it comes to market growth. You can always do up a home, put in a new kitchen and turn the worst house on the best street into something spectacular. You cannot change the location. Even though your house might be a gorgeous newly renovated mid-century townhouse, if it’s located on a street renowned for its high crime rate and vehicle theft, you won’t attract buyers or tenants and the property won’t increase in value. Don’t skimp on location and purchase a home in the most salubrious area your budget will allow.
If you’re after a long-term investment akin to a savings account, the most fruit avenue down which to meander is the rental market. Purchase a home within the city, surrounded by cafes, bars and restaurants, and close to good transport links, and your dwelling will ooze appeal. Look for high-end apartments to attract the wealthy young professionals. These sorts of tenants tend to be reliable, pay up on time and enjoy being left alone.
The most vital aspect of any rental property is ensuring that the numbers stack up. Get out your calculator and make sure that your monthly rental covers the mortgage. This way you won’t be out of pocket, and your investment in bricks and mortar can just tick along nicely.
You may wish to broaden your horizons and look into vacation rentals rather than long-term lets. Although let out on a weekly or fortnightly basis, renting to holidaymakers can be much more lucrative as they pay a higher rental yield. Just make sure that you can mitigate the reality of not having your rental occupied for a few months of the year. You still need to pay your mortgage.
Managing Your Let
You could, of course, manage your rental property yourself. If you’re handy with a spanner and a hammer, you may be able to fix the leaky washing machine or change a light fitting when needed. If you don’t fancy the hassle, you could employ a management company to look after the day to day maintenance and rent collection for your pad.
If you venture into the world of property, you could end up with an investment that could pay you back at a much more handsome rate than if you left your cash in the bank and could see you set up for a healthy retirement.