Beginners Investment Property Guide
Last updated 17/09/2018
If you would like to be a property investor, whether it be for a pension plan, to supplement your current income or as a job replacement but do not know where to start this beginners investment property guide will help you on your way.
Buy Property Based on Research
It has been found that people are ruled by emotion when they invest in property, but you must buy property based on analytical research and sticking to your ceiling numbers.
First on our beginners investment property guide is to answer the questions like; will it provide the expected returns? Is it the best location? Will it appeal to the owner occupier market that sustains in the long term?
Paying due diligence and doing your research is one of the ways to begin your investment property portfolio on the right step.
Plan, Plan, Plan
When you realised you wanted to become a property investor what was the reason? Was there an end goal or income? Are you in it for the short term or long term when you invest in property? What type of property do you want to manage? Answering these questions will allow you to have a clear and focused investment plan which will help you make the right choices along the way.
Rushing into a property investment without the full facts could be as disastrous as standing by idly in a bid of being cautious. You must quickly find a middle ground and fully immerse yourself in the investment process to grow and learn from it. If you feel you are in too deep, then seek professional advice to guide you as a beginner property investor.
Can You Afford The Investment?
You’ve done your homework, found the right property and are ready to invest but have you answered the most important question of all? Can you afford this investment? If you cannot invest outright with your own money, can you borrow the amount needed? Will the investment generate enough income to cover your outgoings or if something goes wrong?
As a beginner property investor you may not realise that not many investors will buy a property in their own name. Instead they will do so via a limited liability company or limited partnership, this protects your personal assets if you lose the money you have invested.
As a beginner investor you need to learn the ropes when it comes to managing your property investment portfolio. You may feel as though with an investment under your belt you have a handle on it, but what about if you add 2, 3 or 4 more can you still self-manage your portfolio? Ongoing management can be time consuming and it may be necessary to seek professional help.
Joint Venture Property Investing
If you don’t fancy taking all the risk or doing all of the work, perhaps another route to invest into property would be via the joint venture route. This allows you to partner with property developers and asset managers by leveraging their collective skill sets in unearthing profits you wouldn’t necessarily make on your own.
If that’s something that appeals to you, check out JaeVee’s joint venture crowdfunding platform that allows you to invest in property development and buy to let opportunities throughout the UK.
If you would like to read more property investment information, then visit our Blog.
We would advise you to seek independent financial advice before investing. Capital at risk when investing in property.