Investing in property can be a big deal so you want to make sure your doing it correct. People invest in property for a lot of reasons mainly because it can be a great pay off in the long run.
Here is our ten step guide to investing property:
- Find the right property: having a property that no one wants will cause a lot of problems for you. you need to spend a lot of time considering the advantages and disadvantages of the what property type your getting. Key factors to include are: location, size, facilities, local services and attractions and current market status.
- What are you buying it for: there are several opportunities with property most first time buyers commit to a buy rent property. Buy to rent properties can be filled relatively simply based on the area your buying it for. If its near university is could be good to convert it to a HMO. if its a residential area look at family factors like schools and local shops.
- Get your finances right: taking on a project you don’t have the finances for can cripple you and destroy your credit score. Most mortgages require a 25% deposit for you to qualify for the mortgage
- Run it like a business: properties are businesses, always run it like a business. Tracking expenses: tax, profit margins. Have a plan with it and achieve the goals you set out.
- Monitor the market: With frequently changing conditions it’s important to monitor the market. Being informed of external variables is a key component to your marketing strategy.
- Marketing: How you market your property is important as its their first impression of it. Marketing agencies and estate agents can market for you but if you’re doing on your own think it out thoroughly who your target market is, remember its better to be specific than general.
- Cash flow is king: in order for your property to be profitable you need to focus on cashflow as that’s what pays your mortgage and debts. Make sure you have systems in place to regulate your cashflow and ensure your tenants don’t miss a payment
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