Property is a popular place for people to invest their money. Most property investors make their money one of two ways. The first way is buying a home and letting it out to tenants. The second method is ‘property flipping’, which involves buying a property at a cheap price, renovating it and then selling it at a high price. Whilst these are the two most popular strategies, they aren’t the only ways to make a return through property. Here are five alternative ways to make money through real estate.
Own a holiday home
A holiday home works on a similar premise to a buy-to-let property. Rather than renting the property out to tenants to make your return, you rent it out to holidaymakers, backpackers and travelling professionals. Obviously, for a holiday home to be successful, it needs to be in an area that attracts visitors, whether it be tourists or people on business trips. You can hire a property manager to look after the property for you and use sites like AirBnB to manage bookings. As an added bonus, when there aren’t any guests staying at your holiday home, you can always take a retreat there yourself.
Rent out a property for commercial use
Another alternative form of property investment could be to buy a property and rent it out for commercial use. This could be leased out to businesses to use as office space or offered to retailers to use as a shop. Alternatively, you could rent it out for events. Depending on the type of space, this could include conferences, trade fairs, exhibitions, sports clubs, weddings or parties.
Consider a self-build
You could consider building your own home and then selling it for a profit. Building a home is often cheaper than buying a home, although you do have to factor in the price of land. If you have construction experience you may be able to build it yourself. Alternatively, you may prefer to hire a new home builder company to design and construct your property. Some properties can sell for twice as much as they cost to build.
Consider a conversion
Another option could be to convert a building into something more profitable. This could include converting a barn or a garage that you own into an extra living space, which you can then rent out to a lodger or sell as a separate property. There are some truly creative conversions out there including water towers and mills that have been turned into homes and offices. Be wary that certain properties may have limitations as to what they can be turned into.
Invest in property shares
There are property rental companies out there that go around buying real estate and renting it out to tenants. Buying shares in one of these companies could be a hands-off way of making money out of property. Such companies may look for large investments, which may not make this appropriate for all types of investors.