4 Ways to make Money with UK Property Investment

1. Find foreclosures
If you have enough money, you can buy a house at a foreclosure property auction. However, most areas require you to pay cash the day of the auction. The problem with this strategy is that often you cannot see the inside of the property prior to the property auction.

A better way is to find people in foreclosure and work a deal with them prior to the auction. This does not require you to pay cash and many times, you can buy the property with seller financing.
This situation can be beneficial to both parties. You are helping someone keep a foreclosure off their record and whilst buying a property at a discount.

2. Buy in depressed areas
Find areas that are depressed but have some redeeming quality such as proximity to a good school or seaside, a thriving town, a property with easy access to London or other major cities or some other desirable place.

Many depressed areas need a pioneer. Someone to come into the areas, buy cheap, either tear down and build or renovate the old property. This kind of activity will eventually attract other property investors or home owners with money. Once property investment starts rolling into an area it becomes a more desirable place, which ultimately attracts an increase in property value.

3. Pay retail and hold for the long haul
This method refers to buying a property and holding onto it in the hope that its value will increase over a period of time, this is very likely considering that UK house prices have been increasing in recent years.

You have to focus on the time value of money when looking at the long-term benefits of the property. Let us say you buy a £200,000 house today and the property appreciates at a modest 5% a year. After 20 years, that property will be worth more than £530,000! At a 10% appreciation rate for 20 years, the home will be worth over £1,345,000!

Keep in mind that at the same time, your tenants are also paying down the mortgage. Can you imagine if you had 5 or 10 good long-term property rentals? After 20 years there is a good chance you would be a millionaire.

4. Buy to repair property
most property investors either do not have the time, patience, knowledge or desire to buy a rundown property and renovate it. This is where the handyman or contractor can make some good money from property investment.

You can make money by repairing damaged or run down houses, however, always purchase them at a discount from normal market values. Make sure you either get the house at a good price or have a way of adding some value to the house. Usually, the investors who get their hands dirty make money doing this.


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