Getting on the property ladder is always a good idea and stops you feeling like you’re pouring your hard earned salary down into the rental drain. Even better when you’re considering getting in on the ground floor of investment and starting your own property rental or resale business.
But is it as easy as simply buying and selling or buying and letting out? What are the specific challenges you might face as an investor? In this blog we take a look at three issues to look out for when you plan to launch yourself as a real estate mogul.
The only way to overcome this issue is of course to get on with it and learn on the job but a lack of experience can manifest itself in some real problems. You may find that your keenness to get going blinds you to some obvious problems that the property you’re looking at carries with it.
Your optimism to get started may be misplaced and get in the way of your practical head. As much as you want to get on the investment ladder, take your time when buying your first property. Get it properly assessed and work out if it fits within your budgets. If it doesn’t then be prepared to walk away.
Keep reading the blogs and websites of other real estate investors to gain top tips and keep an eye on the markets to see when property looks like it’s taking a dip.
Starting any business requires a steep learning curve, whether that’s learning about property investment or keeping an eye on your HOS tracking for your driving business.
The market fluctuates and it can be tempting to take on a property just because there’s been a dip. But if that property needs a lot of work or is just too much for you to take on, then stay back and wait for the perfect one to come along.
It might feel that you’re waiting forever but don’t be tempted to rush in. If you do find yourself waiting around for longer than you’d like, you might consider casting your net a little wider and looking at neighbouring towns or cities to increase your portfolio.
The best thing that you can do is find the best real estate agents to work with. Look for a real estate agent with plenty of properties on their books, and have a few conversations with them too. If you have an idea of the styles of properties you want to add to your portfolio, this will make it much easier. When you work closely with a real estate agent, they will often present you with properties that haven’t hit the market yet.
You can ask for a referral from friends and family, or search online to find one with glowing reviews. It is important that you trust the realtor that you choose so have plenty of conversations with them.
Deciding to Sell or Rent
You need a strategy that’s going to maximise your investment. For some properties this is going to be a quick buy, renovation and back on the market. For others, you’re going to consider them a long term investment, renting them out for a steady monthly income. Keep an open mind but always be thinking ahead for the next deal. Try not to get too tied into one property but instead use it to finance the next deal.
Getting into property investment is an exciting and potentially profitable business. But when you’re starting out for the first time be sure to come up with a business plan and choose your first property carefully as the springboard for your investment future.