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Jan 02

7 ways to Earn More through Property starting with no money.

7 waInvesting through Propertyys to Earn More through Property starting with no money.

There are many ways to earn income from property and it can be a long term or a short term strategy. Many people have become both wealthy and successful using property investment. While it seems expensive you can start with nothing and build up to larger investments using other people’s money as well as your own. Joint ventures also enable starting with little or no money and can be a form of leverage to larger profits.

1.            Spotting for a developer:  needs only some time and enough money to move around.  Property developers often don’t have the time to find suitable areas to develop so are happy to pay for good leads. You can increase the fee by also preparing due diligence on the property so the developer has only to negotiate a purchase. This strategy can become a full time job or you could form a relationship with a developer and move up to become a full scale developer.

2.            Property trustsAs little as $ 1000 can get you a start in a property investment through a listed (on the Stock market) or unlisted trust. This will give you a regular income and capital gain. The best part is you can build up the investment at any time either by adding more money or reinvesting the income.

Once you have enough for a deposit you can step up to buying a residential property.

3.           Rent where you live and own a property elsewhere :  You can usually afford  to rent a better house or apartment than you can afford to buy and the costs of owning a property  can be used to decrease tax. So if you are a good saver this is a strategy that will accelerate your property portfolio.

4.            Buy and rent:  This strategy is best for new or relatively new properties so you can get tenants in straight away and depreciate the value for tax. Busy people who don’t want to take time organizing repairs use this method.

5.            Buy, renovate and rent:  If you have time or want an alternative career you could buy an older property and renovate it. This will give you a higher return on rent than just buying and renting. The key is to get the repairs and renovation done quickly so the property brings in an income as quickly as possible. This takes good planning and the ability to organize the right tradesman at the right time.

6.            Buy, renovate and sell:  If you don’t want to manage a rental property you can buy an older property, renovate it and then resell it a higher price at a profit. This could be followed by then doing the same thing with a more valuable property and then buying two properties with the profits and leapfrogging your portfolio.

7.            Joint Venture:  By forming a partnership with someone else you could share the costs or they could provide most the funds and you do most of the work. This could be used for any of the strategies.

Of course these forms of earning more can be used for both residential and commercial property.  You could specialize in just one or use several to increase your income.  Once you are experienced  you could even quit your day job and set you up for retirement.

As with all forms of investing it should be run like a business. Have a goal, have a plan and work within your budget. Good luck.

 

 

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