There are a million and ten property investment guides all over the internet and at estate agents, and when you start to read through them, you soon find that there are conflicting bits of advice. While they all likely share the same values, the best lessons to be learnt are from those who have successfully done it themselves. Here we have listed our top 5 property investment tips from our known successful investors.
Hiring A Good Accountant
Accountants are easy to find. On the other hand, a good accountant with the necessary experience in the property industry might be. It’s worth taking your time in finding an accountant as there is much to know about investing in property especially if you are a foreign investor. If you find an accountant that has worked for several small businesses for many years but has barely touched on the property industry you should consider finding someone else. A good accountant will have extensive knowledge into the laws and additional expenses that come with buying property, and will ultimately know what is in your budget and what isn’t.
Understanding The Risks
Here are some property investment tips you cannot overlook. Purchasing property is rarely a smooth or fast process and so understanding the potential risks is paramount. Great profits can be made in property. However, you have to be patient. The process is not quick. In fact, it’s rather slow. Realising the right times to buy and sell is just one of many factors to consider. You also need to account for development delays which will impact the completion dates. Lost paperwork which unfortunately happens, and the time it may take to find a tenant. A savvy investor will consider all these factors. This brings us to our next point: due diligence.
Due Diligence is Essential to Property Investment Success
Next, in our series of essential property investment tips is to always undertake due diligence. As professional as they may look, you should never assume that a development company is as professional as their brochures. To get a good understanding of how well they execute their plans, research is always required. If they are relatively new and haven’t got much of a background in terms of completions, you may have to decide for yourself whether it’s worth the risk.
Otherwise, look for the experiences that other people have had from their previous developments. Though it may sound pretty obvious, due diligence should be done for every service and company you work with when buying a property. Surprisingly a lot of issues that arise during the buying process could have been foreseen by undertaking due diligence.
Keep Up With Property Market Updates
The thing with the property market is that it continues to evolve and adapt. With this in mind, a successful investor will continuously have an eye on the property market. Building upon the extensive knowledge that they already have, investors stay updated on news and spending trends to help them make a smart investment. They develop a thorough understanding of the potential risks. Also, they weigh up the pros and cons that would come with every investment before making a decision.
On top of the market spending trends and mortgage rates, you should also be up to date with the latest building regulations, landlord obligations, and tax laws. One phrase you will never hear from the lips of a successful investor is ‘just wing it you’ll be fine’. You likely won’t and investors most definitely do not invest on that basis.
Know Your Investor Strengths And Weaknesses
Quite often, business owners and property investors try to save money as much as they can by taking on certain areas of responsibility. While this may feel a little kinder to your cash flow, it isn’t necessarily the wisest of choices. In doing this, you are donating a lot of your time in learning and completing different stages which could take a professional half the time.
If you have a clear understanding of where your strengths lie, then it would be best to find professionals with the right experience to concentrate on the rest. Paying for such services will buy back your own time and probably leave you a lot less stressed. Getting a small team of professionals to help with either your business, investments or both could result in wiser decisions and higher investment returns. Concentrate your energy on the things you are an expert in and hire others for the rest.
A Final Takeaway from Our Property Investment Tips
Many assume that property investment is a gamble. An element of this may be true but there are numerous variables that will help predict the kind of return you could achieve. The above tips are key to successful investments, that and respectful professionalism of course.