ExecutiveChronicles | How to Make Money Out of Real Estate | There are many people the world over making money out of real estate. It might be that they are actively looking to create a business out of the property that they own and, therefore, keep purchasing more as a result. However, it could also be that they have inherited property and, rather than selling it, have decided to keep it as an investment for their future.
If you are thinking of starting your own property-based business learning from a Sydney real estate course is the way to go. If you have inherited a loved one’s home and are not sure what you can do with it, here are some suggestions that you may want to take a closer look at.
1. Residential rental property
You will find that regardless of how big or small the property is, there is likely to be a tenant somewhere willing to rent it from you. However, you will have to make sure that it is in a livable state and desirable enough to catch any potential tenant’s eye.
As you will be looking at the property as an investment, you are going to have to ensure that its rent is going to cover any outgoings (for instance, if you have had to take a mortgage out to purchase it or cover any extensive renovation that you have had done). In order to get top dollar for it, you are going to have to understand how to increase rental yield and perform any necessary changes.
A local real estate agent will be able to advise you how much rent you are likely to get, both before and after any work is completed. They may also be able to advise you on any advantageous improvements specific to the area or the demographic that you are looking to rent to.
2. Self-catering vacation accommodation
If you are not so sure about having tenants in your investment property for long periods of time (anything from six months onwards) and are thinking more about very short-term lets, then maybe setting it up as a self-catering vacation accommodation would suit your needs.
With self-catering vacation accommodation, you will be letting it for periods spanning long weekends (or mid-week breaks), or, more likely, weekly, fortnightly, or even as long as monthly vacation breaks. Of course, you will be in complete control with regard to how long your property is available, so if you are only interested in renting it for a week at a time, then that is how it will be let.
Unlike having a residential tenant living in your property, you may find that there are spans of time when your property will stand empty (depending on location, price, and vacation attractions nearby). You will also have to think about your maintenance regime and how you are going to keep it clean and inviting for each and every paying guest.
3. Offering additional bedrooms as a B&B
If you do not have a separate property to rent out, but you are sitting in a large home that you want to monetize, then you have the option of opening your spare bedrooms to vacationers who simply want somewhere to lay their heads at night and maybe have a spot of breakfast in the morning. You may find that this option will also attract the odd professional person who happens to be in town for business purposes and will, therefore, only require a room for a night or two rather than a whole week to explore the area.
Again, with this, you will also have to think about how you will deal with keeping the rooms clean and have ample fresh bedding, as your guests may have a quick turnaround.
4. Leasing a room to a lodger
If you do not want to have multiple strangers sleeping in your home most nights, you can opt to rent your spare bedroom to a long-term lodger. This can be ideal if you live in an area that is very expensive or has a lack of affordable property for those just starting out on their career path.
It is likely that your lodger will be with you for a while, so you will have a chance to get to know them, so they will not be strangers for long. You will, however, have to understand that they will require access to your kitchen area, bathroom, and possibly even your sitting room unless you can provide them with their own areas within your home, which would make their lodgings more of a bedsit than just a bedroom. Of course, for this, you will be able to ask for more money but may not get much of a chance to get to know them.