It’s a new year and for investors, that means brand new opportunities. Exciting new thrills to make or, if you take the wrong paths, lose money. So, where you will you be investing your hard earned cash this year? Experts and analysts are suggesting a rather unique and incredibly lucrative possibility. They want you to think about buying property. We could be on the verge of another financial crisis and analysts claim that buying property is one of the best ways to keep your money safe. Are they right?
There is certainly evidence that would suggest if you buy property, you have a good chance of having money that you can fall back on. Perhaps one of the best things about investing in property is that you no longer need to worry about your money depreciating. Instead, you can focus on doing what you can to make the property more financially attractive for a future buyer.
Of course, real investors will know that there are two ways that you can invest in property. Either you can invest to sell, or you can invest to lease. If you invest to sell, you will be property flipping. Through property flipping, you buy a property at a bargain value, fix it up and sell it on. We want you to ignore this possibility for now. The fact is that it is far too risky, and you could end up losing a lot of money if you buy a dud. Besides, this isn’t the type of investment experts are recommending.
They suggest that you instead buy property and rent it out. Specifically, the market is booming for investing in holiday property. Why is this? Right now, the market and the economy is in recovery. A lot of people are finding they have more money to spend than they did just over five years ago. Of course, that means people are spending again on luxuries. You, yourself might be booking a vacation to a tropical destination this summer. So, the advantage of buying holiday property should be clear. There is certainly a growing demand for it and it won’t diminish anytime. There will always be tourists looking for places to stay on vacation.
Have we convinced you that buying a holiday property could be the right investment decision? Before you immediately start researching real estate websites online, there are a few things you need to understand. In short, you will need to recognise and accept the responsibilities of a landowner. This is not quite the same as being a landlord. When you are a landlord, you will have tenants. As a landowner, you will have guests on your property.
But that means it is your responsibility to keep the property clean, tidy and up to health and safety standards. If the property needs fixing you will be required to arrange it otherwise, you won’t be able to rent it out. Depending on where you buy your property, you may also be expected to pay for other costs. For instance, a large number of holiday properties are in private areas. If this is the case, you might be expected to pay upkeep costs for the surrounding location. If you understand these issues, you are ready to think about buying.
Buying Holiday Property
The first thing that you need to think about is where you are going to buy. Experts suggest that you choose a hotspot for tourism. You’ll find these across every country in different regions. You might not want to buy property in your country, though. Instead, you may want to purchase a holiday property in a region that you frequently visit yourself. There are two advantages to this. Firstly, you will be able to use the property yourself when you are over there. Ultimately then you will have a holiday every year that pays for itself! As well as this you will be travelling there often enough to fix any issues with the home and get it ready for your next lot of guests.
You might wonder why you shouldn’t just buy a property in the region where you live. It would certainly make more sense, logistically. The fact is this will depend on the state of the housing market in your area. You might live near to a popular tourist destination. But you will need to think about the prices of houses there and whether or not you can afford to buy another one.
You need to investigate regional real estate markets and find out where the best deals are. To do this, you may want to perform your own searches online. But a better idea would be to speak to a real estate broker. They’ll be able to find the property they think you would be interested in and places that you can afford.
However, before you do that, you need to decide what type of property you will buy. We briefly mentioned housing in private areas. If you are a buying holiday property, this is a sensible option. There will be times through the year when there is no one staying in the property. If you buy in an area like this, you will have complete security and protection for the building.
You may also want to consider what type of tourists you are trying to appeal to. If you are shopping to the family market, then you will have to consider looking for a private accommodation that is quite secluded. However, if you are thinking about catering to adult couples looking for breaks you may want to consider investing in a luxury apartment. Again, a real estate broker can help you find this type of property on sale.
There is a danger to buying a holiday property abroad. It’s unfortunate to say that there are companies that target international property buyers to scam them out of their money. Either, they sell a property for a lot more than it is worth. Or, they sell a property online and don’t deliver on what they promised. To avoid this possibility, you will need to search for a reputable dealer with good reviews.
Once you find the property you like, it’s time to buy. To do this, you need to first think about the transfer of currency. Remember, you will be buying overseas and dealing in large amounts of money. This is quite complicated, and you need to find a professional company to handle this type of transaction. Have a look at this guide to compare the best cheap international currency transfers. Remember, you will be able to use this service once you own the property to pay for any repairs or renovations. That way, you won’t always need to be over in the country to arrange a job.
Profiting Off The Property
Congratulations, you now own your first piece of holiday property. Unfortunately, this is where experts predict buyers are going to experience their first problem. They own the property, but they are not making any money from it. What’s gone wrong. The chances are that you haven’t put any thought into marketing your property. Don’t forget that if you don’t announce it’s a holiday property to the world, no one is going to know. You can make literally thousands every week of the year on a good holiday property. But only if you market it correctly.
There are a few ways you can think about marketing your property. You may want to sign up to a holiday property site. The advantage to this is that you will have thousands of holiday-goers checking out your property every year. You will get the sales that you want. But, you will need to pay for this privilege, and you’d be surprised how much some sites charge.
An alternate option is to set up the marketing entirely by yourself. This will take a little more effort, but you’ll save a lot of money. You will also make your property look unique and stand out from the rest. To do this, you will need to set up a holiday blog, designed specifically to rent out your property. To make it more interesting, you should add pages about local attractions near the property as well as holiday advice. You’ll need to make it friendly and ensure that it looks like something consumers can trust.
Through either one of these options, you should find that you will soon be making a lot of money by tourists eager to rent your property. You will need to take into account difficult seasons, though. As we said, there are times throughout the year when people aren’t going on holiday. To solve this issue and still make money, you just need to drop your prices at this time. Increase your marketing and you will soon find more customers.
We hope this post has been useful to you. Remember, if you are thinking about investing in property do not take the decision lightly. There are a few risks, but you also stand to make huge amounts of profit. You could even turn it into a full business.