Three Tips for the Ultimate Hands-off Investment

Let’s be honest; we all want more money.

Money is the road to the good life, with many of life’s problems being fixed by the green stuff.

Whether we want to buy the house of our dreams, go on trips abroad multiple times a year, or just have a peaceful, early retirement – having more cash can help a lot.

The problem is, though, many people give up a large chunk of their lives to chase this dream.

Working upwards of 9 hours over seven days a week isn’t ideal, and we can spend our lives chasing money rather than actually living it.

But work is part of life, right? Or is it? Surely there’s a better way to spend our time rather than working multiple hours a day?

Thankfully, there is. And it’s called investing in real estate.

If you have a keen eye and money to spend, real estate investments can be the ultimate way to earn money.

The best part? You can do it completely hands-free without directly working for it.

By placing money in a real estate asset, you can earn regular monthly income through rent and sell the property further down the line for a huge cash pay-out.

With this in mind, here are three tips for the ultimate hands-off investment.

  • Buy Off-Plan with an Investment Company

Chances are you will want to make a sizeable investment for the least amount of money possible.

While real estate can get pretty expensive, one way of ensuring lower than average prices is by buying off-plan property through an investment company.

Let’s address the former first.

Off-plan property is property that hasn’t yet been completed but is still available for purchase.

While that sounds incredibly risky, you’re heavily rewarded with the risk by having huge discounts.

These discounts can save you thousands on a property. The best part? The chances are the property’s price will already have increased by the time it’s finished, already netting you a healthy profit within months of purchasing.

As for investment companies, they can help you invest in real estate if you’re a beginner and give you discounts and offers like free furniture packs to help save you some cash.

Off-plan properties can be an incredible venture as they can help net you incredibly modern apartments equipped with things the modern renter wants.

ELEMENT- The Quarter, a residential property from ELEMENT developments, comes equipped with pioneering eco-technology, which is perfect for eco-conscious renters looking to save energy and money on bills.

A study by Forbes found that the majority of millennials and Gen Z would spend more money on eco-friendly products, making investing in eco properties a smart move to consider.

Of course, investing in an unfinished property can be risky.

For that reason, be sure to thoroughly research the developer behind the project and the investment company you are trying to work with. Check out their reviews on websites like Trustpilot to ensure your investment is safe.

  • Research. Research Some More.

Speaking of research, where should you invest?

Well, if you have an eye on a particular property, it’s vital to research the local area and see if it is suitable for a property investment.

That means identifying local house prices, how they’ve grown throughout the years, the demand for property, and rental yields.

Rental yields are perhaps the most important part of this if you’re looking for regular income.

Rental yield is the return on your investment you earn through rent and is calculated by dividing the yearly rental income by the property’s purchase price and multiplying the result by 100 for a percentage.

Typically anything between 5 and 6% is considered good, so be sure to work out rental yields on any prospective properties you are looking at.

Don’t just restrict yourself to local property, either. You will find that rental yields can differ a lot based on location, with some countries having huge rental yields with affordable property.

Investing overseas is becoming increasingly popular and is easy to do if you use an investment company.

But how will I manage my property if it’s in another state, city, or country?

Well, this next tip is for you.

  • Use a Property Management Company

To ensure your property venture is completely hands-off after purchase, you will need the help of a property management company.

These sorts of companies are great if you don’t want the hassle of becoming a landlord.

Property management companies are fantastic as they will handle all the day-to-day duties of managing a property. That includes finding tenants, dealing with tenant demands, and collecting rent.

All you will have to do is sit back and relax and collect the cash.

Obviously, these services don’t come free and can cost around 10% of your monthly rental income.

However, for the ultimate hands-off investment, they are a necessity.

Luckily, if you use the services of an investment company, you won’t even have to find one yourself as many developments come equipped with an already established management company.

Despite Covid-19, there’s arguably never been a better time to invest. If you have the funds and are ready to invest, there’s plenty of real estate opportunities out there just waiting for you.

Who knows, before long, you could be relaxing on a beach financially free a lot sooner than you first thought.

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