One of the great things that you can do when you have a little bit of spare money is to invest it. And there are so many different avenues that you can go down where you can spend a little or a lot upfront. Look at Bitcoin; in 2012 you could invest in Bitcoin for less than a dollar – and now that investment would be worth millions. You can also invest in property, stock, gold and even wine.
The options are unlimited. But what happens when that investment pays off? Yes, you could keep it and spend it – which is why you invested in the first place, right? But you can also use some of that capital and re-invest it. This type of growth is how people make their millions; by growing their money over time with smart investments. You can use an investment advisor who specialises in different areas – such as 1031 Gateway for commercial property.
Property is actually a very wise investment to make, but seeing how expensive it can be to purchase any building, it could be the aim of your reinvestment plan. Having made some money elsewhere, you can take that increased money and go into the property market.
Commercial Properties
Typically brought to be leased rather than sold, a commercial property could be a good source of income. The prime location would be in a busy town centre. If you can get your hands on a listed building – that’s even better, as companies pay extra to have an aesthetically pleasing premises. But older buildings can come with some rules on what you can and can’t change in regards to the structure and outward appearance. The obvious choice for finding a company to rent the space is to advertise to big, well known brands, as they are more likely to sign a longer contract and have the money to pay the rent. But that doesn’t mean you should discount smaller and independent businesses.
Properties Abroad
Another option would be to buy property abroad to rent, or even to do up and sell. Buying abroad can be a great option as it can work out a lot cheaper than buying at home. It also gives you the option of using it as a holiday home; by renting it through the year as holiday accommodation, then you can easily book off a week or two just for you to go and enjoy it.
However, that does bring up the fact that managing a property in that way from another country can be difficult, and would need a trusted person there to act as your proxy. It can also mean that any issues that need to go through you could be a lot slower as you might be in completely different time zones.
Buy To Sell Or Rent
The options with property don’t just stop at renting it out. This is an incredibly popular option as you are able to earn a decent amount each month, and still have the ability to sell for a profit later on down the road. However, not everyone is going to make a good landlord. Plus, not all tenants are good tenants.
Renting a property does come the risks of it becoming damaged, rent not being paid, and even being used for something unsavoury. You should never approach renting a property with blinkers on. So, if it’s not for you, then you could go through the home improvement cycle. Buy a house, fix it up, and sell it for a profit. You can buy homes for low prices at auction, or, if you have a good amount of capital, you can buy a house that needs a complete rehaul and make an even bigger profit.
