Property Investment: 5 Things Every Newbie Must Know Before Taking the Bold Step
Property investment is becoming a popular investment option. It has proven to be one of the safest investment options with great potential for high returns. However, property investment is a dynamic game and to successfully kick-start your property investment career, and to stay ahead of the competition, you have to take many things into consideration. After all, anyone can decide to go into property investment but only those with sufficient knowledge can succeed in the business.
Now you might probably start thinking of how you can possibly learn everything since the property investment market is very vast. Well, the truth is that you actually don’t need to know everything. As a beginner, property investment is mostly learning by doing. Nonetheless, there are some basic yet important things you need to know as a newbie before buying an investment property. We will examine five of those things in this article.
1. Get into a property investment ‘peer’ network
It is no secret that most successful people surround themselves with like-minds. To be a successful property investor, you have to surround yourself with experienced professionals who can add value to your journey. There are many ways you can meet like-minded people, for instance; attending seminars, shows and presentations. You can also reach out to many successful property investors on numerous social media platforms and blogs. Nonetheless, you should be careful of property investments advice you listen to.
You also need to recognize the fact that you cannot ‘do it all’. You undeniably need a property savvy accountant, solicitor, property strategist and finance broker. You can get good companies or individuals to work with on Reviewsbird.co.uk.
2. Choose your strategy and stick to it
This is an essential step when you go into property investments. You have to find a property investment strategy aligns with your goals, risk profile and time frame. You can speak with your accountant or financial companies before selecting a suitable strategy.
3. Know where to look
Knowing where to look is one of the most common challenges most property investors face. You have to be able to identify some below the market value deals and where to look for them. Here are a few places to look:
- Expired listings
- Absentee owner houses
- Pre-foreclosure properties
- For sale by owners
- For rent by owners
4. It is all about the location
In property investments, location is everything. When looking for a property to buy, it is important that you research property markets first. The location of a property determines the returns on investments. If you are wondering how to choose a good location, here are a few pointers:
- Growing job market
- Low crime rate
- Nearby amenities
- Good infrastructure
- Good school systems
- Future development
- Reasonable property taxes
5. Be well informed about the purchasing and negotiation process
In property investments, you will find out that everything is negotiable – from the purchase price to the contract terms, to the deposits, to the settlement terms. All need to be negotiated, so you have to be up to the game and well informed to ensure you don’t lose out of a good buy by making an unattractive offer to the purchaser.
Property investment is a lot more than purchasing property and waiting for it to make money. Before going into property investments, you need to educate yourself on almost everything related to the business. Nonetheless, you should also know that property investments require an individualistic approach so you need to identify and address your own goals and needs to achieve your desired success.