Becoming a property investor can be a great way to make money. If done correctly, it can prove to be a profitable endeavour. However, like every other investment, it requires careful management and is not without some risks.
This article lays out some key things to keep in mind when purchasing your first investment property. By following these tips, you can be better equipped to make sound property investments that will benefit you and it may also help you avoid making some common mistakes.
Brush up on your property investment knowledge
It is important to get a good understanding of the process of becoming a property owner before actually buying a property, so make sure you have your basics covered. Do some research on the market and get some advice from reputable estate agents in the industry. As you are investing in a property to let, it is also important to speak to the lettings teams to gain more of an insight of the local property market and the types of properties that are popular with tenants in the area.
Investigate potential rental values and yields, and ensure you discuss your options with a qualified mortgage advisor. This will help you to really understand the risks and rewards you can expect, such as what returns on your investment you are likely to achieve. This allows you to set realistic expectations.
Have a clear plan
Once you have brushed up your property investment knowledge, think about how much money you are willing to invest as well as what returns you would like to make. You will need to think about what type of property your investment can realistically purchase. You will also need to think about things such as location and key property features.
Find the right help and advice
Having knowledgeable parties who you can trust to help you achieve your goals is essential; they will be a useful resource for you. So make sure your investment advisers, property managers, estate/lettings agents, mortgage advisors and other interested parties are all on the same page with you and understand what you are looking to achieve.
Start with a manageable property
When it comes to making your first property investment is all about quality, not quantity. Make sure you are investing in the right property in the right location and that your key objectives are being met.
It might mean that you will have to be patient in building up your portfolio, but this is one of the best ways of ensuring you make a profitable ROI whilst learning the ropes of property management and minimizing your risk of making a loss. The more experience you gain, the more you will be prepared to take on bigger investment opportunities in the future.
Be prepared to work
A key thing to remember about investing in property is that it is a long-term investment and should be used as a means to build a profitable and sustainable portfolio. Don’t overwhelm yourself by taking on a property which requires too much extensive work such as renovations, if you know you are not ready to do so.
Thinking of buying a property?
haart Investor Services Team is here to help. Contact our property investment expert Kate Hurles on 079 6012 0267 or email firstname.lastname@example.org