There has never been a better time to get into property investment. There is always going to be a need for housing, especially as the population continues to boom and grow. Having investment properties is an easy way to make some extra money; once you get into the swing of things and have the know-how, you could end up with large amounts of passive income without barely having to lift a finger. If you are thinking about taking the leap into the world of property investment, here are five top tips to help get you started.
Know Your Budget
It is absolutely essential that you have a thorough understanding of your cash flow before putting in offers and starting to invest in property. You don’t have to have paid off your mortgage entirely, but make sure you have good control of your current debts and finances and that you are aware of how much you are able to borrow. Don’t forget to budget in any necessary renovations and the ongoing maintenance costs. Remember, it is always better to over budget than it is to under budget.
Choose Liveable Over Luxury
The properties you invest in do not have to be top of the range and sparkling brand new to be good investments and make you money. No matter whether you plan to resell or rent, the property has to be structurally sound with no damp, mould or other issues that could cause expensive problems further down the line, but as long as everything is in working order, it doesn’t need to be luxurious.
Decide with Your Head Not Your Heart
You may find a stunning house with a beautiful view over the valley, but there may be some real structural issues that are going to be costly and time consuming. Make sure you weigh up the pros and cons from an objective point of view. Leave your emotions behind and think with your business mind instead of letting your heart take the reins.
Get a Trustworthy Team
When you are just getting into property investment, you need people in your corner that have all the knowledge to help you get the best deals, guide you through the process and rent out or sell on your property for a fair price. You need to find credible and dependable people to work with closely, like those at this Handsworth estate agents, who you can build a professional relationship with that has benefits for all parties.
Make Necessary Renovations
There are some elements of the property that you just cannot overlook, like installing double glazed windows and having fully functioning heating and electrical systems, but you also need the property to be attractive to potential tenants or buyers. Outdated finishings can be replaced relatively cheaply, as can the floors and worktops, and a fresh lick of paint really works wonders. It doesn’t have to be amazing, but it is greatly advised to update any features that look old or tacky. Think minimal and neutral with a little bit of style.
Property investment is a journey of discovery and learning, but these five tips should get you well on your way to making that first leap towards becoming a successful property investor.