Buying a Gold Mine
Buying a property is the best investment you can make, here are some economic ideas to consider when choosing a property- to convert it into your own gold mine in the future.
A Rental Suite
If legal in your area, it is a great option to invest in setting up an area of your property to be suitable for renting. This could be the classic basement suite or room rental or if you don’t have the space you could consider outdoor accommodation. An empty garage which could be converted into accommodation, is a potential alternative. If a garage is not an option, a free standing structure (i.e. a log cabin) could be a suitable fit for you.
Before renovation or rebuilding remember:
· Research regulations for rental suites in your area
· Calculate how much income your will receive monthly from the rental, consider this when renovating so you can realistically pay of this investment in a suitable time frame.
This is a detailed guide for first time landlords, which is a superb resource for all things rental!
Investing in a rental property
If you don’t like the idea of a rental suite then maybe buying a property, purely just to rent out might be a good option. If this is the case here are some important factors to consider:
Location: ideally the location of the property should be desirable, this means the monthly rent would be higher. Being close to a school or university, a hospital or town/city centre can make your property more desirable.
Size: depending on how many bedrooms and the general size of the property, it will appeal to different markets and for different rent prices. For example, a three bedroom house would probably attract a family whereas a two bed apartment might interest one or two people. Before purchasing a property assess who you would want your renter to be and buy according to that.
Price: depending on your budget and the property you buy, the rent you get from your client monthly will vary. Before, buying the property you should assess how much rent you would get monthly and how long it would take to profit from your investment. For more information on renting, click here.
Rental Storage Space
Is the idea of being a landlord unappealing or unrealistic for you? If so renting out a storage space instead of accommodation might be a better option. Depending on the size and characteristics of your available space, it might be suitable to rent out monthly for a steady income.
You could rent out your space seasonally, for people who want their vehicles stored during winter months. Or you could rent it out all year, to someone looking for permanent storage but doesn’t have the space where they live. A garage, shed or barn is an ideal space for rental storage space. However, if you don’t currently have an outside structure but have the space to build one, you could consider building one as an investment.
The demand for rental storage is on the rise, so this is a great option for a steady and sustainable income.
Bed and Breakfast
If your property is a substantial size (preferably with a few spare rooms available to rent) and in a appealing location, then running a B&B may be an ideal option for you to maximise your rental income.
The nature of B&B’s means that rooms are rented out nightly or weekly which often means the rent per night is greater than renting out accommodation monthly.
However, running a B&B does require more time, research and man power. So before jumping into it ensure that you have the time and other people to help you out. For more information on running a B&B, click here.
A holiday let is a vacation property where accommodation is furnished and suitable as an alternative to a hotel. It is temporary, usually people stay for less than 30 days. With a surge of ‘staycations’ in the U.K. In recent years, this is a great investment. Although it does require full furnishing, in the long term a holiday let is usually more lucrative then renting as people pay on a daily or weekly basis at higher rates, as an alternative to a hotel. Here is a guide to holiday letting.