How to get started in Property Investment?
There are so many distinct factors to consider when getting involved with property investment but by ensuring you do your research the outcome can be hugely profitable.
The first key points to consider are:
- Where to invest
- The type of property you’d like to invest in
- Whether this is a one-off or if you’re looking to start your own portfolio
Are you looking for a “buy to let” or a “buy to sell”? The answer to this will depend on whether you are a property Trader or an Investor. You should be able to answer which you are through our previous videos on Traders versus Investors and what to look out for upon viewing auction property.
Compare residential property and commercial property.
Although residential may be the obvious answer, commercial property can provide a sizable rental income too. Commercial property generally carries a lower stamp duty and land tax. If vacant for some time the vendor may be more likely in accepting an offer pre-auction.
The biggest disadvantage on investing in commercial property is that it can take longer to secure a tenant thus leaving you with a longer empty period, however, the advantage is that tenants tend to stay for long periods of time.
Understand what’s involved.
The saying, ‘Fail to prepare and prepare to fail,’ comes to mind here. Depending on your investment strategy you must understand the rules and regulations when it comes to, not only the investment itself but also to any tenants that you may be taking on and your responsibility to them also.
Regulations will depend on whether you buy into a freehold or leasehold property. A commercial or residential property. A vacant or let property. Remember, there are always experts about should you have any queries, questions, or concerns.
Network with other investors.
After all, who knows better than those with extensive experience? Now networking doesn’t necessarily mean attending property events but by just adding yourself to relevant property groups over social media there is a mass of free education, tips and advice you can tap into whenever you have some spare time.
The truth is – there is NO real secret to financial freedom other than motivation, hard work and by making mistakes and learning from them.
Focus on your goals and your strategy. Ensure you invest in a property that fits with your strategy. Yes, you may want to keep the property forever and pass on to your children but there may come a time when you need to sell or even to release some equity for another investment. Bear this in mind when choosing the right deal.
Did you know that property auctions only make up a small percentage of the property industry? There is a general stigma that only problem properties are sold at auctions. Well, this far from the truth.
You can join the Connect UK Academy for free. This will ensure you know all you need to when it comes to buying and selling properties through auctions and not just privy to the professionals.
Source: Connect UK
Author: Emma Webb [email protected]
Date: 21st of October