Is Property Still The Go-To Market For Amateur Investors?

For decades, the housing market has been seen as one of the staple markets for would-be novice investors across the developed world. The early noughties saw unprecedented rises in the value of real estate and led many people sitting on lucrative next eggs within personal savings accounts to take a punt on, what seemed like, a win-win investment. The logic behind investing cash in bricks in mortar was that the investment was low risk, you were assured of a return, and you were guaranteed not to lose money. In recent years, these three facets of real estate investment have been tested to the limits.

Brexit hanging over Europe and the Trump administration’s unknown financial policies in the USA have led to more uncertainty across the financial sector, including real estate. While bricks and mortar investments may no longer be as safe as houses, is it still an avenue down which amateur investors should take a stroll?

Fixer Uppers

Many people watch their trusty television to witness like-minded people heading to property auctions to pick up a cheap bit of real estate. They appear to renovate these homes with little trouble, in a short space of time and have them back on the market to be sold or rented out within three months. In theory, while this is doable, fixer uppers tend to hold a lot more unforeseen problems such as structural issues, damp and restrictive clauses. Attempting to outperform the market by purchasing the worst house on the best street is becoming ever more difficult as the property market is stagnating and there does not appear to be the same appetite for buying.

If you’re not keen to get your hands dirty, whip out the paint roller and get renovating yourself, you might be keen to invest your money in a scheme that allows you to diversify your risk across a range of properties. Reading Patch of Land reviews, it becomes clear that you can take part in a highly specialised crowdfunding type exercise with expert property developers using your cash to renovate fixer uppers, bring them to market, realise a return, and give you back your share of the profits.

DIY

For those who are still keen to be masters of their own destiny, it’s more important than ever to try and get ahead of the game. To outperform the market, you must try and buy in an area that is up and coming. Buying in an already established area means you have missed out on the initial growth. Getting in early and holding onto a property for the long term by renting it out means that you will see the maximum return on your investment.

Budget

You must always calculate your rental yields and potential profits using sound budgetary techniques. Always have a contingency of at least ten percent should any unforeseen problems rear their ugly heads and project manage effectively. Wasted labour and wasted time is simply wasted money.

While real estate isn’t as lucrative as it once was, there are still opportunities for money to be made. However, you need to be financially astute and willing to seek out ways to outperform a stagnant market. By heeding this advice, you could still flex your amateur property developer muscles and see a return on your investment.