3 Ways To Make Money Through Real Estate

Although the market is undeniably volatile at the moment in the wake of the coronavirus pandemic, if you are careful and considered in your approach, now could still be a good time to invest in real estate. In fact, the global situation could actually be used to your advantage.

Flipping Houses

Mortgage rates are at a record low, which has made the real estate market more attractive than ever before, but because of other economic uncertainties, many people are questioning whether now is actually the best time to be investing in property.

There certainly isn’t a blanket yes or no answer to this question, it comes down to personal circumstances; but if you are considering purchasing a property with the intention of flipping it for a profit, some points to consider are as follows:

1. If mortgage rates are low now, the chances are that they will rise in the future. This could potentially hurt prices, and make it more difficult to sell a property on after you have done the work. However, the Fed has promised to keep rates low until 2022, so if you move quickly on your investment then this may not affect you.

2. With such low mortgage rates, mortgages are more affordable. This could mean that sellers simply up their prices to match what buyers can afford, which could raise house prices. If you are buying to flip the property and you time it right, this could work in your favor.

3. Be sure that you have the capital to invest, and that you can afford to invest it. Create a budget and a business plan and stick to it. You don’t necessarily need to have an entire deposit in cash as you can obtain hard money loans to pay for investment property, but you must be certain that your plan is robust and that you will be able to pay it back.

Invest In Warehouse Space

With the rising popularity of e-commerce businesses, more and more people are looking for warehouse space in which to store the goods that they are selling. Investing in warehouse space in the right area could mean that your property becomes incredibly sought after, and also offers several benefits over investing in residential real estate. For example:

1. Versatility. Warehouse space doesn’t just have to be used as storage for e-commerce businesses. You can repurpose your space in line with current trends to make sure that you are maximizing its potential.

2. Higher income. Dependent on the location, you could potentially make a lot more money on a commercial property than a residential one.

3. Lower volatility. Once a business has begun renting space from you, they aren’t going to want to move unless they definitely have to. This is quite different from the residential market, where people can move quite frequently.

As with all other property, if you invest in repairs and improvements then your property should appreciate in value, in line with market trends of course, just as residential spaces do.

Create Co-Working Spaces

The coronavirus pandemic has shown that a lot of people can do their jobs from home. Businesses are likely to cash in on this over the next few years and get rid of huge expensive office spaces and opt instead for smaller spaces where just a few employees come in at a time.

For the employees working at home, this causes a problem because lone working is just that—lonely! If you can provide a dynamic environment where people can get the sense of community that they are looking for while they are working, you could potentially cash in on the new trend for remote working as it grows.