As any estate agent could tell you, the housing market is going through a period of change and it’s more important than ever to keep up with current needs and trends. As such, anyone looking to invest in real estate should have a good understanding of the market and how, in recent years, two dominant investment strategies have won out over the rest.
Today, we’ll be talking about the two main strategies for real estate investment and how you can decide which is right for you.
Buy-to-let renting has been around for decades and the way it works is simple. You find a decent-value property, rent it out to tenants and make a regular profit on the income.
The benefits of buy-to-let are quite apparent. It’s an effective method of gaining passive income while taking relatively minimal risks. While managing and maintaining a property does require some work, for the most part, buy-to-let is the perfect investment if you’re looking to make decent profits without having to invest too much time into building your real estate portfolio.
That being said, there is a second method that has taken estate agents and landlords alike by storm in the last few years and changed a great deal about how the housing market looks today.
The BRRRR Method
Buy, refurbish, rent, refinance, repeat. Those are the five words that have come to define many modern investors’ approach to real estate. But why do so many estate agents recommend it?
Well, put simply, many people see BRRRR as the perfect way to have your cake and eat it too with the housing market. The process is very simple: you buy and refurbish a property, then you rent it out until it has paid off the investment you put in upfront. When that’s done, you sell the property, taking home the full profit of the house with practically zero losses.
The downsides of BRRRR are that it’s more work as you have to oversee renovations and regularly move from property to property. It’s also quite a bit slower than buy-to-let, as you only make a profit once the renters have paid off your initial investment.
Working With An Estate Agent
If you want to maximise your profits from the BRRRR method whilst also saving yourself a fair amount of time and effort, then it’s a good idea to work with a reputable estate agent. An estate agent is an expert in the housing market who’ll be able to help you push up the value of your house and sell at a better price.
Ultimately, real estate is all about how well you understand the market and how well you can use the tools at your disposal. If you want to get ahead then it never hurts to have a modern, forward-thinking approach.