If you have been toying with the idea of investing for a while, and have just decided to take the plunge, you may be a little stressed. While property investment is one of the safest forms of investment, it can still be scary parting with your money for the first time.
To make the process of buying your first investment property a little easier, here are a few useful tips.
Know how you’ll make your money
Before you invest, it’s crucial that you have a plan in place for how you’ll make your money. There are two types of property investment – buying to let and buying to do up and sell on. The types of properties that you need for each of these investments differ, and it’s important that you know that. So before you invest in a property, you need to ensure that you know how you’re going to make money from it.
If you know how you want to make your money, it’s worth contacting a specialist investment company for help. By talking about property investment with Rebrick Wealth, you can ensure that you invest in the right property. Companies like this can source houses that are perfect for your plans. Whether you plan on renovating your investment to sell on or renting it out, it doesn’t matter.
Understand the risks
While property investment is the lowest risk investment, it’s important to realise that there is still some risk. Whether you’re investing to sell on for a profit, or to rent out, it’s important to realise that property prices do go up and down.
That’s why, property investment is best as a long-term earner, as it can take years to make a good profit. If you’re able to wait a few years before selling your property on, you can reduce you chance of ending with a loss.
Have a plan in place
If you want to ensure that your new venture is a success, you need to have a plan in place. This should include how much you expect to earn on your investment. As well as how long you want to keep the investment for, and how you plan on keeping on top of things.
You see, becoming a property investor is like starting a business, so you need to be organised about it. This is especially true if you’ll be renting the property out, as you’ll then be a landlord. As a landlord, you will need to ensure that you are prepared for everything that comes with the job.
If you don’t want to be called out at three am to a burst water pipe, you need to hire a handyman to deal with those types of issues. If you don’t want to market the property yourself, you need to go through a company, to do that. There’s a lot more to being a landlord than collecting rent each month, and it’s important to realise that.
While there are a few downsides to investing in property, if you know what you’re doing, the rewards are fantastic. If you’ve got money to invest and want a stable investment, buying property is definitely the way to go.