Winning a lottery prize of £1 million is a thrilling experience. But have you thought about what to do if you win the lottery? If not, then you have come to the right place. Here, we will tell you an investment strategy that can give you remarkable returns in 2020.

The housing sector is one of the safest and profitable areas to invest your money. This sector has immense potential that has always paid good returns to people. In addition to buying a real estate property, there are several other ways in which you can park your money in the housing market. Let us explore these options.

What to do if you win the Lottery

Here are some of the ways you can do after you win a hefty amount in the Lottery.

1. Invest In A Property

Whether you invest for the first time or an experienced investor who wishes to grow its investment portfolio, real estate investment is lucrative to enhance your potential.You will benefit from the increase in property prices every year and monthly rental income.

Looking at the current rental prices, an investment of one million dollars in a rental property can earn you a rental income between 60,000 and 100,000 dollars annually. Along with that, your rental property price will also increase. Thus, it will give you dual benefits. To invest in the housing market, you need to perform a detailed neighborhood analysis to locate a good place to invest in a rental property.

You can find several options to rent a property, such as

• Single-family
• commercial spaces, and
• multi-family.
• Analyze available investment real estate properties for sale to find the best offer.
• You can even take the help of real estate investment tools to help you find the best property in accordance with your preferred location, growth potential, and budget.

2. Investment In A Land

Now the next option can be to buy a terrestrial area. Hold the land for some years and then sell it for massive profits. In a place, you can even buy a home and sell it later when the housing market is at its boom. If you want incredible returns and are in no hurry to make profits, we suggest purchasing land a little far from the major city.Hold it for the long term, i.e., around twenty years or so, and sell it later.

Choosing far areas is beneficial because cities have become very populated, and the property price is high there. The place outside the city is growing at a constant rate. Developers and builders will soon be exploring their areas. Many corporations also choose distant locations to set up their units, such as business parks, IT centers, etc.

So, if you are thinking about what to do if you win the lottery of £1 million, then buy land of that much worth and keep it for twenty years.The sale of that land would solidify your affluent status. Go for agricultural land that is far from commercial hubs. You can get such places at ten or twenty times lesser than the price. Soon, that place will develop with common amenities and utilities as available in the commercial sector. With a lesser investment, you are going to make a large sum of money in the future.

3. Property Investment Trusts

Real estate investment trusts, also called REITs, are indirect ways to invest in residential areas. These specialized firms collect money from interested investors to build, purchase, or manage property assets.They trade in various trusted publicly-traded REITs funds that are into investing in real estate properties.

There are a few advantages that this method provides real estate investors:

• As you are not directly investing in real estate, it needs less time commitment than what you incur when owning properties.

• This method spread your risk across hundreds and thousands of properties. So, a sudden hefty maintenance cost would not break you.

• These are highly liquid investments that can easily be purchased or sold in a few minutes.

• They invest your money in the housing market via a tax-advantaged retirement account and pays above-average dividend yields than what you would get by investing in house stocks.

4. Crowdfunded Real Estate

Crowdfunding is another method to invest in the housing market.There are times when an experienced real estate investor finds a lucrative opportunity but do not have adequate finances to either purchase or renovate it. So, they list the financing opportunity on a crowdfunding portal intending to raise capital from individual investors.

In return, they will offer an equity interest in this project. This method involves high risks but can give you high returns. Go for this method only when you have a high-risk tolerance ability, and don’t think much about what to do if you win the lottery. Only those investors should invest in this scheme who do not need money in the near future.

5. Homebuilder Stocks

Homebuilders companies engage in buying and selling of housing properties. A few of them also publicly trade on key stock exchanges.You need to note that homebuilders are more economically sensitive than rental properties.

So, if any world economic crisis hits, your tenant will keep on paying rent (rental properties) but can lead to a decline in home sales dramatically. It is a highly profitable long-term housing investment strategy but not for short-term yields.

Conclusion

Investment in the housing market is indeed a smart investment decision in 2020. These are some of the best ways to invest in homebuilders and the real estate sector. Based on your needs and preferences, you can find a perfect investment strategy. You can even choose a combination of strategies to accomplish your investment objective.