If you want to make investments that are going to give you a return and a safety net should you need it – then always opt for real estate. 

Real estate offers one of the best returns, and it is something tangible – which is what makes it the preference for many first-time inventors. It is also easier to understand in terms of return, cost, and length of time. 

Stocks, shares, bonds, and ISAs all have their place within any well-rounded investment portfolio, but if you’re starting out and you have some cash to spend – buy bricks. 

Research

No matter what the information that you have been given about the property says, do your own research on the area, the building, the materials used, and the politics and government in the area. 

If there is anything you missed in the initial research and information period, unfortunately, those costs are going to be on you. 

Pay close attention to the local cities too – will there be any large factories or data centres built? Have there been investments in the local area? 

Look for things that will bring more people to the area. It can be an opportunity to cash in. 

Bigger

If you find a house that hasn’t got a good amount of bedrooms but does have a loft – work out how much the cost of a conversion will be vs. the price you could rent the house for after it was done. 

The bigger the house, the better the rental income for you, which will decrease the mortgage on the property much faster – giving you increased income over time. 

Partnership

If you have the cash but lack renovation skills, you can find a partner who can take care of what you can’t. When you have a renovation partner, you can lower the initial buying price and buy a property that needs to be fixed up. 

While you might not relish the idea of buying a property that is in less than perfect condition, the value of the property can sky-rocket when it is completed. 

You might also decide that rather than rent the property out, you prefer to go down the home flipping route rather than rent the property out. 

Flipping

If you don’t have a lot of cash to spend, it can be better to fix and flip a few homes while you stack your cash for a more significant property that you will rent out. 

You have to be aware of how much it will cost to fix long before you decide to go down this route – or at least have a budget and time set aside to do it. Many people who decide to fix and flip a house don’t realize how small the time timeline is before it becomes more expensive than just buying a rental-ready house. 

And finally, when you have one or two investment properties, it is a good idea to remain hands-on so that you can learn as you go. After a while, you can hand a property portfolio over to a management firm – and just reap the income rewards. 

If you aren’t interested in properties, here are some other options: What Investments Will Make You The Most Money? – Alain Guillot.