In recent years, investing in property has become increasingly popular. It seems as if everybody imagines themselves a property developer, and is keen to invest in as many houses as they can to build up a healthy (and wealthy) property portfolio. If this is something that you’re interested in, or have recently been thinking about doing, you need to really think about what you can do to make money with property. Because it’s really not as simple as buying a house, selling it, and cashing in. There are fees to consider, different costs to work in, and then your own budget to bear in mind too. So never just assume that buying property is an instant pile of cash. Because it could cost you. Let’s dive in and explore what plays into it.

How Much You Invest

First of all, you should think very carefully about how much you will invest. And this needs to be broken down in two main ways. The first is based on what the current property rates are. So you will want to find a realtor you trust, like Sotheby’s Realty, to help guide you with prices and availability. Then, you need to factor in what you can actually afford. Because what you have available, or the amount of mortgage you can get may determine how much you invest.

Interest Rates

The next thing you need to give a lot of consideration, is the interest rates that you’ll be looking at. As much as you may think that you can make money when you renovate, if you’re paying crazy amounts of interest, then you have to be careful. Because by the time you’ve paid off the mortgage, you may not have made as much money as you originally expected. So you should calculate this from the start, and of course shop around to find the lowest interest rates possible.

Fees & Charges

As a step on from that, you’ll want to consider the fees and charges you will pay for the duration of the property ownership. Not only buying and selling fees, but any other fees that may arise with your mortgage too. You may be charged an early exit fee, and you have to bear this in mind if you’re trying to make money.

Renovation Costs

Next up, you need to factor in the costs of renovating the place if you’re looking to sell it straight away for a profit. Or to add these in to the long-term costs that you have. Because you need to be sure that you’re not spending too much on the space, and cutting into your profit as a result.

Potential Profit

But then also, it’s absolutely essential for you to be thinking about the potential profit that you might be able to make with the property too. And you have to be really smart here. But you do then also need to think about how you can include all of the fees, interest, and any other costs that will come into this. Because it’s not always guaranteed that you’ll make money. So forecasting will help you to decide whether you’ll be able to make the money you want from property.

Making money in real estate is not as easy as the commercials on TV make it out to be! Although possible, it takes research, hard work, a little elbow grease and maybe a bit of luck!

Disclosure: Some links are affiliate links that may earn me a commission. I am recommending these companies based on my research and/or experience and truly think you would benefit from them, regardless of any commission I may earn.