If youre thinking about investing in property, you might have a slightly skewed perspective. Speak to people who have already invested in property and generally, theyll tell you how much money theyve made and how easy it was. They wont tell you about the struggles they faced, and they will probably fail to mention that it took longer than expected. Surviving your first property investment isnt easy, and if youre not careful it can leave your bank balance dry and you emotionally drained.
That said, there are steps you can take to avoid the issues and make sure your first property investment is a brilliant success.
Speak To A Broker
One of the first mistakes you can make investing in property is buying the wrong place. Basically, you need to make sure you avoid buying a property that doesnt have the potential to be profitable in a future sale or through letting. Properties like this have major issues that will require expensive repairs.
You can avoid this completely by making sure you use the service of a broker. A property broker will only recommend buildings, houses, and flats that have most potential. Just like a stock broker, theyll recommend these investments to you so you can decide whether they are worth your time and your money.
There is no getting around the cost of a property investment, and were not just talking about the initial cost of purchasing the property. If you are preparing the property for let, you will need money available for renovations and perhaps even furnishings. Of course, there are always ways to cut the costs and still guarantee that you have a brilliant place where people will want to live. Companies such as Flambard Williams have some fantastic buy to let tips that could really help you here. Although one option would be to buy an entire block of apartments and then furnish it with furniture bought in bulk. By doing this, you can save a lot of money from one purchase.
Dont Grow Too Fast
You might be eager to grow your property investments, and this is understandable. Particularly, if one seems to be going quite well. For instance, you might have bought one flat, let it and decided to invest in another. However, this could be a mistake because when you do this, the costs can quickly grow out of control, rather than the profits. Instead, you should focus purely on your first investment and wait at least a year before taking another risk.
Remember The Hidden Costs
Finally, there are a number of costs that come with investing in property that might not be apparent at first. For instance, if you are buying an apartment you might need to pay money to the owner of the building for maintenance. In cases like this, the easiest way to handle it is to take that into account when choosing how much to charge in rent. The trick is to plan your budget so you are always in the green and constantly think in terms of the worst case scenario. Do this, and you will survive your first property investment.