House prices have been rising throughout the UK in recent months but Sheffield is being hailed as the best performing property market in the country, after sellers received an average of 101.4% of their asking price in 2021. While first-time buyers might be finding it hard to get on the property ladder right now, homeowners and savvy entrepreneurs can make lucrative returns. To find out how, take a look at these six ways to capitalise on Sheffield’s booming property market:
1. Rent Out a Room
It isn’t just house prices that are rising across the country; rental prices are increasing too, which means you could generate extra income by renting out a room. If your home isn’t currently fully occupied, taking in a lodger could be an effective way to boost your revenue.
While the amount you can charge will depend on various factors, such as the size of the room, the area, and the amenities available, it’s not unusual for homeowners to earn hundreds of pounds of a month simply by renting out a spare room.
2. Build a Barn Conversion
If you want to get on the property ladder but can’t find a mortgage deal, self-building could be a viable alternative. With many rural locations surrounding Sheffield, a barn conversion could be a clever way to build a stunning property at a fraction of its sale value.
Remember – there’s lots to consider before embarking on this type of project, so be sure to plan ahead. If you want to convert a barn, you might need to find professionals to undertake a series of assessments, such as a bat surveyor to conduct a bat survey. Protected species are often found in barns, which could scupper your plans, but a bat survey from Arbtech will help to determine whether you can move forward with your plans.
Similarly, you’ll need to apply for planning permission, commission a building survey and arrange for utilities to be installed. With the opportunity to design your dream home, however, building a barn conversion could be a great way to capitalise on the rising property market.
3. Sell Your Property
The increase in property prices means that the value of your main asset (your home) is likely to have risen in recent months. If so, selling your property now could enable you to maximise the return you’ll get on your investment.
Of course, you’ll need to consider how and where you’ll live once your property has sold, as purchasing another home means you’ll be faced with high prices too. However, if you have a second home you can occupy or you’re able to stay with friends and family until the market begins to drop, this could be a savvy way to reap the rewards and generate high returns.
4. Convert Your Garage or Loft
Increasing the amount of usable space in your home and maximising its square footage can add a substantial amount to its value. A garage conversion can be a relatively easy and fast way to add more living space to your property, so you can commission a conversion in time to capitalise on the booming property market. Similarly, a loft conversion gives you the opportunity to create more usable space and turn a dusty attic into a luxurious bedroom or productive office.
By turning your garage or loft into a home office or a studio bedroom, for example, you can increase the value of your property and use the space to generate short-term income. As you create more space, you might choose to rent it out, for example, which will allow you to recoup your initial investment and generate revenue in the future.
5. Improve Your Property
As the value of your property rises, your borrowing power can increase too. If you’ve always wanted to remortgage or take out a secured loan on your home, now could be the time to do so. For many people, a home improvement loan is a good way to enhance their living environment and protect their most valuable asset.
If you want to extend your property, rewire your home, or renovate your living space, for example, a remortgage, secured loan or home improvement loan could give you access to the funds you need. Of course, it’s always important to get independent financial advice before making any major decisions. By seeking specialist assistance from financial advisers or independent brokers, you can find out what your borrowing options are and determine whether improving your property is the best way to realise its potential.
6. Lease Your Land
Although property prices have hit an all-time high in many areas, the cost of land has risen too. This means you can generate extra revenue from leasing any land you have available. People often assume that you need to have access to acres of fields to lease land, but this isn’t the case. In fact, homeowners routinely generate income by renting out driveways for parking or garages for storage.
If you have any land available, consider how it could be used and research what its rental value could be. There is considerable demand for land throughout the country, so you might be surprised at just how much leasing your land could generate.
Can Anyone Make Money from Property?
The property market can be a viable way to make large returns and many investors find that they’re able to generate large profits by buying and selling homes or renting out property via buy-to-let investments. However, it’s important to remember that no investment is ever guaranteed, so you’ll want to do your due diligence and seek professional advice before you start investing.
Despite this, there are numerous ways to make money from the property market, which means that virtually everyone can get involved. Whether you’re an existing homeowner with a room to rent or visionary who wants to design and build their dream home, you can leverage market conditions to access the funds you need and maximise returns.
