How To Make Money In Real Estate

My first piece of advice will be to avoid commercial property. The high street is shrinking, there are many empty shops. I think it is a very dangerous investment especially with new retail parks opening.

My next piece of advice would be to avoid new builds. New build apartment blocks, new houses, you always have to pay a premium, you don't always get more rent. I also say avoid low yield investments, also expensive properties which will go into the low yield bracket.

There is a bigger risk of costs because as you are paying more, any percentage will result in greater capital loss. The advantage of the lower end of the market is if you do take a mortgage, the actual mortgage will be lower. High mortgages can be a noose around your neck.

And beware, interest rates can rise. So, if you are moving into an opportunity, that really needs a big mortgage, perhaps you should work out what one or two percent increase in interest rate would do to your repayments. My main piece of advice to you - be an income seeker.

This will probably direct you to the lower end of the property spectrum. Pulling properties in the UK, for example, that are priced 60-70 thousand pounds or lower which would, of course, require a smaller mortgage. There are a multitude of tenants, for example, those on benefits, also working tenants.

Before buying, you must look at the pitfalls. Perhaps take a drive down the surrounding streets, talk to local letting agents and state agents. So, if you're seeking capital gains, in the real estate market, and you're prepared to wait maybe a couple of decades, then it's definitely the place for you.

But for the rest of you, my advice, of course, is to be an income seeker and there you will enjoy above average gains. And that's how to make money in real estate.
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