Despite the wider economic doom and gloom in the UK, the housing market on these shores continues to go from strength to strength.
In March of this year, the average house price in the UK peaked at a staggering £278,436. What’s more, this figure betrayed annual price growth of 9.8%, while there’s little sign of this growth rate depreciating any time soon.
As a result, selling your home may be the best way to monetise its real-time value (depending on the area in which you live). But how else can you make money through real estate in the UK?
#1. Buy to Let
While the removal of tax breaks may mean that the buy to let market isn’t as attractive as it once was to prospective landlords, this is still a viable way of profiting from property ownership in 2022.
After all, the disproportionate relationship between house price growth and wages continues to price first-time buyers out of the market, creating increased demand in the rental space and making buy to let properties increasingly profitable.
Certainly, landlords can leverage demand to apply a premium to their properties, so long as this takes into account the wider economic climate and cost-of-living crisis.
#2. House Flipping
The term ‘house flipping’ refers to the process of buying properties, adding value and reselling them, usually for a profit and within a relatively short period of time.
This can be an excellent way of realising profitability in the near-term, although much will depend on your ability to add value affordably and achieve a return on your total spend.
If you do decide to house flip, it’s also crucial that you work alongside reputable and efficient conveyancing solicitors. This way, you can expedite the speed at which transactions are completed, while guaranteeing that everything is done effectively and with the minimum of fuss.
#3. Transform Your Property into a Holiday Home
If you’re serious about making money from your property, it’s crucial that you choose the right piece of real estate in the first place.
This means identifying good value homes in an area that’s likely to see values appreciate within a relevant time period, depending on your precise expectations and how you intend to generate a profit from the property.
Depending on your chosen area, you may also find that there’s a high level of demand for holiday homes. This is particularly true if you live in a picturesque coastal location in the UK, as this creates an opportunity for you to market your property as a holiday home during the summer.
You can rent out properties for a period of days or weeks depending on your living arrangements, while leveraging sites such as Airbnb to optimise your reach and potential audience.