How to Make Money Investing in the Housing Market

If you’ve been stock-piling your money rather than leaving it in the bank to earn from their farcical 0.01% interest rates, then perhaps the recent news that the Housing Market is faring better than expected post-Brexit could be music to your ears.

Just a quick look at some of the trading and spread betting sites will show you that leading building companies are starting to recover some of their losses, while foreign investment and increasing population figures saw July property values increase 12.3% year-on-year in London and 13.2% in the East of England.

Interested? – Here’s where you start:

 

Getting Started Investing In the Housing Market

The main thing to note is that you don’t need hundreds of thousands of pounds to invest. While there are sites out there that specialize in grouping together prospective buyers to help generate everyone a profit, the Bank of England’s 0.25% base rate change means that you can secure an incredibly low mortgage on a Buy to Let property and just cover the deposit so you own it yourself. What’s more, owing to the Brexit fear-mongering about huge falls and job losses – none of which has materialized to date, the rental market is still booming and the right property will cover more than your mortgage and management fees with the rent, leaving you to benefit from the entire profit margin when you choose to sell.

The first thing to do is work out what disposable investment fund you have – as any purchase you make should not entail you clearing out all your accounts and leaving yourself vulnerable to future changes in the markets. If you find you have enough to cover the standard 10-20% deposit amount needed on a flat/house, then you can start to look at leading property sites and estate agencies to see if something fits your requirements. While buyers who intend to live in the property will often choose something ‘ready to move in to’ – renting it out enables you to look at properties in need of work and weigh up the pros and cons of purchasing a project where your profit margin will come from the finished product and a potentially stronger rental income stream.

Here is a short checklist of things to help you decide if investing in the housing market is right for you:

1. Are your assets performing well or are you losing money with the Brexit downturn?
2. Can you afford the deposit needed to purchase a flat or house?
3. Do you have the income needed to secure a buy to let mortgage and reduce your outlay?
4. Have you factored in the cost of management fees and any potential repairs should you choose to opt for a project over a ‘finished product’

Regardless of whether you believe investment in the UK Housing market is right for you, the potential ROI is likely to exceed most portfolio streams and is worth reviewing by anyone looking to make money.

For more top tips on how to make money investing in the housing market post-Brexit, keep up to date with our blog and feel free to let us know how you got in if you’ve decided to take the property plunge.

 

Featured image courtesy of Flickr