Sammie Ellard-King
I’m Sammie, a money expert and business owner passionate about helping you take control of your wallet. My mission with Up the Gains is to create a safe space to help improve your finances, cut your costs and make you feel good while doing it.
Quickfire Roundup:
Looking to make money in the UK property market?
There are a variety of options, including buy-to-let, property flipping, rent-to-rent, house-hacking, serviced accommodation, commercial property, property development, crowdfunding, and property management.
But it’s crucial to do your research and seek professional advice before investing in property, as it can be risky.
Remember to diversify your portfolio and consider all potential risks and rewards before making any investments.
Are you looking to make a profit from property, but feeling stuck with the same old ideas of selling or renting out a house or flat? Think outside the box!
There are actually many unconventional ways to make money from property that you might not have considered.
In this article, we’ll explore seven of these lesser-known methods that could help you to turn a profit in the UK property market
Table of Contents
How To Make Money From Property?
Get ready to explore some truly unconventional ways to profit from property!
From bargains to parking, we’ve got some exciting ideas to share that you might not have considered before.
1. Buy a run down property
One of the most common choices for people who want to make money from property is to buy a neglected property and do it up themselves before property flipping.
This can work really well if you are a professional builder, but for those who are not, buyer beware.
Most properties that only require minor repairs and redecoration will be snapped up or fairly pricey and are often few and far between.
Others that require extensive repairs or even renovation will be cheaper to buy but expensive to put right.
It’s also worth noting that what looks straightforward on the surface may be more extensive and complicated once you start looking closely.
Things to check include things like when the house was last re-wired or plumbed. How old is the boiler, and when was it last renovated? You can also look outside the building to check for dampness, holes in the roof and general decay.
This is especially important to consider when you are buying a property at auction, as you may not have had a chance to inspect it thoroughly.
That being said, buying a run-down property can be hugely profitable if you’ve got the eye and can see an opportunity.
Related Podcast Episode 🎙️
Join us with AirBnb coach Ibrahim Braimah as we discuss how to grow a property portfolio without actually needing to buy anything!
This chat we dive into his strategies making money from property and his entrepreneurial journey from homeless to £10 million in assets invested.
Listen to the episode by pressing play just below or by clicking Ibrahim’s name just above.
2. Grab A Bargain
If you are determined to get a bargain property, then you will need to be in a position to move quickly once you have found a suitable one.
Although there are not a lot of properties that will be sold below market value, it doesn’t mean there aren’t any.
You may know someone who wants a quick sale and will accept a reduced price to get things moving. Or it could be that you are lucky enough to time your search with someone dropping the price of their property.
Either way, if you have an estate agent on board who knows what you are looking for then you will have an extra pair of eyes on the market and potentially get first dibs on a bargain.
Make sure you’ve thought about saving for a deposit and equally things like solicitor costs.
If you’re interested in buying a second home, then there are things to watch out for compared to your first.
3. Buy to let property
Buy-to-let has been a traditional way of making a profit from property. In recent years many investors have turned to property as a means of getting safe returns on their investment.
While low interest rates are painful for savers they are great for mortgages and so as we head into more turbulent times rates are set to be on the rise for the foreseeable future.
Finding a good buy-to-let property is not simple; however, you will need to do some research first. Choosing the type of property you want to invest in may be more a case of what kind of tenant you want.
Do you want to rent to university students or professionals?
People have been investing in buy-to-let properties for a long time, and they have weathered many financial storms and even recessions, so it is worth considering as a way to profit from property.
It’s important to note that you need a buy-to-let mortgage to rent it out. Without one it’s essentially mortgage fraud.
4. Serviced Accomodation
Ah, the joys of being a Brit – always on the lookout for ways to make a few extra quid. And what better way to do it than with serviced accommodation?
It’s like Airbnb on steroids! You buy a property, spruce it up, and then rent it out to holidaymakers and business travellers looking for a little more comfort than your average hotel can provide.
Think high-end towels, fancy toiletries, and a fully-equipped kitchen for those impromptu cuppas.
And the best part? You can charge a premium for it all. You’re not just offering a place to stay – you’re offering an experience. It’s all about creating that home away from home vibe. And trust us, those guests will pay good money for it.
But here’s the catch (there’s always a catch, right?): there’s a bit of legwork involved. You’ll need to do your research to find the right location, make sure the property is up to code, and navigate the tricky waters of local laws and regulations.
But with a little elbow grease and some know-how, you could be on the way to your own serviced accommodation empire.
5. Commercial Property
Another unconventional way to make money from property is by investing in commercial property. This may sound daunting, but don’t worry – it’s not as scary as it seems.
Buying a retail space or an office building may not be as sexy as flipping a house, but it can be just as lucrative.
Think about it – owning commercial property means that you can rent it out to businesses that need a place to call home. Plus, commercial tenants usually sign longer leases, which means more stability for your income.
And don’t forget about the potential for capital growth. As the area around your commercial property develops and becomes more desirable, the value of your property can increase substantially.
It’s like being a savvy business owner, but without all the late nights and early mornings.
So if you’re looking for a way to diversify your property portfolio and add some spice to your investment strategy, commercial property might just be the way to go.
6. House Hacking
Have you ever heard of house hacking?
No, it’s not a new Olympic sport – it’s a way to turn your home into a money-making machine.
The concept is simple: you buy a property, live in one part of it, and rent out the rest to tenants.Think of it as being a landlord without having to leave the comfort of your own home.
You could turn your spare bedroom into a cosy studio apartment, or convert your basement into a stylish one-bed flat. And with the rise of online rental platforms, finding tenants has never been easier.
Plus, the rental income can help you pay off your mortgage faster, so you can start building wealth sooner. Just imagine – you could be enjoying your morning coffee while your tenants pay your bills for you.
So if you’re looking for a way to maximise the value of your property and get creative with your living space, house hacking might just be the perfect solution for you.
7. Convert properties into flats
There is an ever-growing demand for flats to rent in the UK as more and more people cannot afford their own homes.
Buying a large property and converting it into flats will allow you to rent or sell them as individual units.
Be aware that it will not just be the construction work that needs to be done, you will also need to legally separate the property, providing separate leases for each flat.
It will probably be necessary for you to have a specialist mortgage for this type of conversion too.
Make sure the work is feasible, and carefully calculate the cost versus the payoff. Seek professional help if you’re not entirely sure. There are lots of great builders that aren’t just looking to take you for a ride that can help you with your estimations.
Other Possible Ways to Make Money From Property
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Land development: buy land and develop it for commercial or residential use.
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Property trading: buy and sell properties quickly for a profit, without the need for renovations.
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Rent-to-buy schemes: rent properties out with an option to buy for tenants who can’t afford to buy outright.
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Peer-to-peer lending: invest in property loans through peer-to-peer lending platforms.
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Property crowdfunding: invest in property through crowdfunding platforms.
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Joint ventures: team up with other investors to buy and develop properties together.
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Rent guarantee schemes: sign up for a scheme that guarantees rental income even if the property is empty.
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Property auctions: buy properties at auction and sell them for a profit.
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Property management: offer property management services to other landlords.
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Holiday rentals: rent out your property for short-term holiday lets.
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Property guardianship: rent out your property to property guardians who look after the property in exchange for cheap rent.
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Car park rental: rent out your parking space to commuters or event-goers.
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Billboard advertising: lease out space on your property for billboard advertising.
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Storage units: convert your property into storage units for rent.
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Film and TV location rental: rent out your property as a film or TV location.
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House-sitting: offer house-sitting services to homeowners who need someone to look after their property while they’re away.
FAQs
Is property the best way to invest money?
The best way to invest money depends on an individual’s goals, risk tolerance, and financial situation.
While property can offer strong returns over the long term, there are also other investment options, such as stocks, bonds, and mutual funds, that may be more appropriate for some investors.
It’s important to carefully consider all investment options and consult with a financial advisor before making any decisions.
Is it profitable being a landlord in the UK?
Being a landlord in the UK can be profitable, but it depends on several factors such as location, property type, rental demand, and expenses.
While rental income can provide a regular stream of cash flow, there are also expenses to consider such as mortgage payments, maintenance costs, and property management fees.
Additionally, new government regulations and tax changes may impact profitability. It’s important to carefully weigh the pros and cons and do thorough research before investing in a buy-to-let property.
Is buying property in UK a good investment?
Investing in property in the UK has the potential to be a good investment, but like any investment, it is not without risks.
The success of an investment in property depends on various factors such as location, market conditions, and personal financial goals.
Property investment can offer strong long-term returns through rental income and capital appreciation, but it also requires careful research, planning, and management.
Can you still get rich from property?
Investing in property can still be a lucrative way to build wealth, but it’s not a get-rich-quick scheme.
It requires a long-term approach and a good understanding of the property market. With careful planning, research, and investment, property can offer strong returns over time through rental income, capital appreciation, and potential tax benefits.
However, it’s important to consider the risks involved, such as fluctuations in the property market and unexpected expenses.
Overall, while there are no guarantees in property investment, with the right strategy and approach, it is possible to build wealth through property over the long term.
Final Thoughts
Property has been the asset of choice for many years, and although it has seen ups and downs in recent times, it is still a solid investment.
Many investors want to invest for monthly income alongside their other jobs or companies and so if you’re not professional the make sure you seek advice.
It’s important to research and work out what strategy is best based on your current financial situation. The last thing you want is to be left with an expensive asset that is bleeding cash through maintenance and upkeep.
If you’re truly serious about investing in property, then consult an advisor and if you’re unsure about where you should be placing your funds, then perhaps consider a financial advisor.
We hope this guide has been helpful for you in deciding how to make money from your property.
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Disclaimer: Content on this page is for informational purposes and does not constitute financial advice. Always do your own research before making a financially related decision.
