How to Make a Killing in Property
Or if not a killing, you can at least make your home or a second property work a bit harder for you. Here’s some ideas.
It’s better than putting your money in a bank with current interest rates. However, you need to look for a great mortgage deal, find the right letting agency to manage it and take into account the new tax laws around BTL that come into force in April.
Fix up a fixer-upper
A “tired” house can turn a nice profit in under a year if you get busy. Make over the garden, the bathroom, put in a new kitchen and so on. You have to factor in the costs of selling and any Capital Gains Tax, though; you also need to look at the street’s maximum sold price – can you match or beat it?
Look to the future
If there’s a big transport hub or an enterprise park under development in a particular area, house prices will rise in anticipation and continue to climb once the facility is open. Buy ahead, do a bit of renovation, then sell it on to eager commuters.
Rent your place out to film and TV companies. If it’s unusual, or it’s in a popular location, a house can earn upwards of £2,000 per day. You’ll have to move out for the duration, and you’re not guaranteed the work, but there’s no harm in registering with an agency.
Find a lodger
Renting out a room is a great idea – you keep the first £4,250 of rental income before you pay tax on it. If you find the right person, a lodger is also good company, a bit of extra security and even a pet or baby-sitter.
Install solar panels
Solar panels (or a wind generator) mean you can sell electricity back to the grid, so after a few years, the investment has paid for itself. They also increase the property’s value when you come to sell.
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