With property investment it sounds so simple that you’d imagine anyone can do it. Invest in some property, spruce it up and sell it for a profit. It’s all pretty easy, right? Property investment isn’t as easy as it sounds and there are a lot of other contributing factors that go into investing in property and making money other than just buying a house, avoiding bankruptcy and selling it so you can afford a holiday in the Bahamas. It is was this simple then everyone would be rich. So how do you make money when you invest in a property? There are a lot of different ways of doing it but here are the four main ways of making money when you buy kiama apartments.
Cash flow income Investing in a property isn’t just about buying a house, ‘flipping it’ and selling it a couple of months after for a healthy profit, there are other ways to do it like cash flow property investment. Cash flow property investment is where you invest in a property that is already liveable and then rent it out to tenants whose rent creates a steady stream of cash each week or month for you to do what you want with. The usual cash flow income properties are flats and apartments which do not need too much work done to them so they can be ready for someone to live in very quickly and don’t need a lot of money spent on them to make them liveable. Investing in cash flow properties just doesn’t have to be apartments and flats though, they can be businesses like car washes or storage units that businesses need or office buildings for rent.
Real Estate Related IncomeThis is income generated form real estate specialists who make money through commission with property investment, such as buying and selling properties. Another form of real estate related income are management companies who get to keep a percentage of the profits for completing everyday tasks such as running the business. For example, running a hotel and everything that is involved. To make money your best property for investors in a real estate management company or become a real estate specialist.
Real estate appreciationReal estate appreciation is probably the most basic form of investing in a property and the one form of property investment that most people will be familiar with. Real estate appreciation is where the property you have invested in becomes more valuable through the changes you make to the property that makes it more ‘sellable’ to potential buyers. Other factors can be weighed into the value of your property becoming higher, such as the demand of the surrounding land or a change in the property market.