Across the globe, real estate holds significant value, and some have learnt how to use this to their advantage. The buying and selling of houses have become a popular method of earning income in New South Wales, but it takes genuine skill and careful planning to execute with efficiency.
Not just anyone can jump in and start making money by selling houses. Property valuation services in Sydney are an essential tool for property sellers, as understanding market value is key to making an informed investment decision.
The nature of a property investment means there are large amounts of money in play. As such, market conditions must be monitored, and real estate investment decisions must be carefully thought out.
How to make money selling houses
So how do you make money from selling real estate? There are a few ways. These include:
Appreciation of property value
The real estate market is always moving, and buying property during a downturn in the market is often a smart choice, as over time the value will begin to increase again.
The more the property value appreciates the more profit you stand to make. Knowing when to sell is one of the most valuable skills a property owner can have.
Development
If you purchase undeveloped or vacant land, you can earn a profit by overseeing well-researched development. Adding buildings for residential or commercial purposes is a great way to sell at a profit.
Renovations and upgrades
Implementing the right upgrades and renovations for the right price is a great way to improve value and potentially profit from the sale of the property.
Choosing real estate to invest in
Your first move should be to find a reasonable property to invest in. Identifying real estate with the potential to grow in value is a crucial part of the process.
Choosing a property to invest in requires careful consideration and research. A few key steps are:
Define investment goals
Outline whether you’re hoping to make money via long-term appreciation, development, rental income, or house flipping.
The property you choose needs to align with your investment goals. If you hope to make a profit through long-term appreciation, it wouldn’t make sense to buy a property in an undesirable area with no development prospects.
Set your budget
Setting a realistic budget is important for effective financial and strategic planning. Decide how much you want to spend on a property based on your savings, borrowing capacity, expected income, and any other factor related to your finances.
Location
Decide on a desirable location to place your focus on. Areas with positive economic growth, high demand for housing and potential for significant future development are attractive.
You’ll have to consider things like proximity to school zones, hospitals and public transport, the neighbourhood’s reputation, crime rate, employment rate, noise, and more.
Seek professional assistance
Getting help from a professional valuation service is critical for real estate investors. Pre-sale valuation reports are often used by investors to make informed decisions when diversifying their portfolios.
An independent pre-sale valuation report from a qualified expert can provide insight into:
- Current market value of the property
- Precise measurements and dimensions
- Any essential repairs needed
- Zoning laws and applicable permits
- Age and condition of the building
- Upgrades and renovations
- Notable environmental risks
- Related tax implications
- Any other relevant factor that contributes towards value
Consider the potential return on investment
Of course, a high return on investment is the ultimate goal for those selling property. If your goal is to make money, you must consider whether the potential return is worth the effort. If the potential return does not line up with your investment goals, it’s probably best to look elsewhere.
Carefully review all the information
Once you have decided on a property, go through everything you know about it one last time and determine whether the investment makes sense based on your goals and budget, and the state of the market at the time.
Summary
Real estate remains a valuable asset in Sydney, and many have learnt to earn extra income through the buying and selling of property. This is not an easy task though; real estate investment is full of risk and requires meticulous research and planning, as well as professional assistance.
Rushing into an investment can have dire consequences. However, with effective planning and careful consideration of all factors, your chances of profiting off selling property drastically increase.
Whether through appreciation of value over time, development of vacant land, or implementing renovations to an existing property, there are plenty of ways to make money from selling properties.
Think about your investment goals, consider your budget, and get professional assistance when seeking out a property to invest in.
At Valuations NSW, our team of accredited valuation experts have helped countless amount of property investors make informed real estate decisions. For more information on our professional valuation services, don’t hesitate to reach out today and speak to one of our highly qualified professionals.
