The Only 3 Ways to Make Money in Real Estate | Ep. 161

In this episode, we discuss the three ways to make money in property investment. These are:

• Capital gains – changing market conditions increase the value of your property. This happens slowly but it is consistent. That is why capital gains will often give you the greatest gains, even though you don't have control over it. 
• Instant equity – this is where you actively do something to the property to create an instant initial equity gain. This can be through renovations that add value or through buying the property under its value. This gives you an initial equity hit, but it is not ongoing. It will bring you more value than cashflow, but less value than long term capital gains.
• Cashflow – this is where your property earns money each week. This is usually a small amount after expenses are taken into account and over the long term it is likely to bring you the smallest returns from the three ways to earn money through property. 

We also mentioned our property investor quiz, this 7-question quiz will show you whether you are financially in the position where you can invest.