Britain is going through a mini-boom in its real estate market. Rishi Sunak, the chancellor, recently cut stamp duty taxes to jumpstart the economy by turning the property market hot. Stamp duty taxes are a requirement if you want to buy property in England and North Ireland, and this could add another layer of expense to a house purchase. Sunak recently announced that buyers of homes valued £500,000 or less don’t have to pay that tax until March 31, 2021.
The removal of stamp duties has seen homebuyers suddenly coming out of the woodwork. Real estate agents have reported an increase of 75 percent in buying inquiries since the announcement. That makes it a seller’s market right now, with many buyers hoping to get a good deal.
Real estate booms are an excellent time for making money. Some experts predict that the US is on the verge of a massive housing boom as millennials start buying houses to stop renting. If you want to make some money during these times, here are some proven methods.
Sell Some Property
The obvious way to make money during a housing boom is to sell properties. But you shouldn’t do it on your own. Real estate agents are there to provide you with professional help when it comes to selling. For example, selling property requires a lot of paperwork. Let your agent handle filling in the forms for your peace of mind. Agents can also be a big help during price negotiations. If you want to maximise your sale price, then an agent can do hard bargaining for you. Besides hiring an agent, you need to time your sales right. You do not want to sell a house and find out you could have waited a few weeks and sold it for a higher price.
Another potential money earner is to rent out some of your properties. While many people can buy, the high prices force some others to only renting a house or apartment. Rising rental rates are an excellent incentive for renting. High rents can mean that if you offer lower than the average, you can expect people to come running. For renting, you’ll want the help of a property management company, especially if you have multiple properties to handle.
Invest in Housing Industries
Putting money in the right industries can also allow you to benefit from a housing boom. For example, high demand for housing will have home builders will be working overtime. Investing in a reliable home builder can only see the value of their stocks rise over time as they build more houses. Other companies that will be sure to benefit from a housing boom. With more people moving into their new purchase, they will end up buying all the new house essentials as well as home improvement supplies. These are all growth industries during a housing boom, and you can expect your initial investment to generate.
Benefit from the Boom
A booming real estate market is always a good sign for the economy. Be part of the good times by using the boom to make some money. Smart investments and decisions will go a long way during times like these.