1. Know what you want to achieve from property – Your Goal
Be clear on what you specifically want to achieve from property otherwise you will always be chasing the next shiny object and end up frustrated that you have wasted time and money getting nowhere.
Do you want immediate cash income, medium term (6-10 years) wealth creation, or a little of both?
Do want a full time job, be completely hands-off (except for legal necessities), or somewhere in between? We offer free financial advice.
2. Understand what makes a good investment
It is essential that you buy the right property in the right location at the right price. You must consider this from the tenant’s position; a home buyer’s position and yours as the investor. This is essential to make sure that the property will make money on completion.
To understand the right price means knowing ALL the numbers involved in the cost of borrowing money for the development project, as well as allowing for contingencies such as delays in construction and fluctuations in the market. Click here to find out about property finance options.
3. Identify the strategies to achieve your goal
There are many ways to make money from property and your strategy needs to align with your goal. Focus on one strategy at a time until you are successful at each.
If you require cash flow, you should consider either buying a large house and renting out individual rooms or buy a house that does not cost too much to buy, but has an excellent rental demand. Click here for advice about letting property.
If you require wealth creation, you will need to identify desirable locations that are growing in value.
Remember that not all strategies work in all economic conditions. Have a look at our financial guides.
4. Know your own limitations
Many people attend training courses only to find that they do not have the personal skills, inclination, time, ability or belief trait to make the particular strategy work for them.
Either match your skill set with your favoured strategy or find someone who has complimentary skills to yours; maybe time, money or expertise, and work with them. This is called a joint venture.
5. Understand what makes people want to live in a particular property
When you buy the right property in the right location for your particular tenant type, they will pay you a good rent and you will have few empty periods in your property. This will put money in your pocket each month and will support your investment portfolio in a sustainable way.
When you buy the right property in the right location where a person or family wants to buy, irrespective of the economic climate, then this property will be in demand and will rise in value without the need for general countrywide inflation.
Hire an architect to plan out the space effectively and to ensure your designs are compliant with requirements.
You therefore need to understand the underlying reasons why some people want to live in a particular location and property type and why some don’t.
For great tips on transforming your living space into a home visit Home Improvements Today