So, you’ve decided to take the plunge into property. You’ve known all along that property is a reliable investment. After all, most of the Sunday Times Rich List owns and makes money from property.
And now you want a slice of the pie.
So you look on Rightmove and find what looks like a good solid property. It looks amazing! It’s in a great area! It’s a little more than I can afford but it’s bound to make money because it’s got a nice new kitchen!
Errrr, slow down.
Buying property is a big deal, and you want to make sure you get it right from the start. The last thing you need is many sleepless nights and an empty pocket over a badly thought-through investment.
These are the top 3 common mistakes that investors make, and how you can avoid the pitfalls
1. Not Having A Strong Plan
Much like building a house, you need a plan when buying a house. You need to know what your long-term strategy is.
Calculate a number of things such as your cost of living, the kind of lifestyle you want, a deadline of when you want your investment plan to be generating an income, and this will determine the type of investing strategy you should pursue.
Create a checklist of things you need to go through one by one.
When you’re buying a property you need to know what you’re going to do with it.
Do it up and sell it to a homeowner?
Do it up and sell it to another investor?
Convert it into flats and rent to families?
Rent it out to students?
What is your plan B if you’re unable to achieve plan A? You need to have this in place as a safety net if things don’t quite go to plan.
Set your goals before you start out, work out the strategy you’re going to follow to reach those goals and every so often check back to see if your strategy still works with your personal circumstances
2. Not Doing The Research
Too many investors make the mistake of jumping in feet first without doing enough research beforehand and have ended up making bad uninformed (and costly!) decisions.
So that you can determine what to buy and where to buy it, first off check out potential locations to invest.
Look at house prices,
What’s the demand for housing?
Is the area affluent or depressed?
Will this property give you what you need?
Just because a property is in your neighbourhood doesn’t mean it’s a great investment.
Don’t only rely on what the estate agent is telling you. If your strategy is buy-to-let, look at the local school, services, transport links, what are the demographics of the area, is this your target market?
3. Not Engaging A Power Team
Engaging a power team of experts that share your goals is crucial.
You’ll need a group of trusted professionals to advise you and help you achieve you financial goals.
Each one plays a key role in every stage of your journey, a property sourcer, solicitor, accountant, builder plumber, mortgage advisor.
They can help with structuring your financing, as well as notify you when new properties come onto the market.
In the long run, their trusted expert advice will save you time and money
So purchasing an investment property shouldn’t be done on a whim, and remember just because someone says they are a “property guru” it doesn’t mean they have the knowledge you need or are willing to work in your best interests.
Get a sound plan, do your research, get a good power team around you and you’re on the right tracks for success.
The Property Wealth System is a collective of active investors who have reached their goals following this system and want to help you achieve the same for you and your family.
We Post advice every week on our youtube Channel to help get you started and inspired with your property journey.
Our weekly Podcast “This Property Life” is a one-of-a-kind podcast we tell the stories of ordinary people doing extraordinary things in the world of property investment. No gurus. No big egos. Just life-changing success achieved by real people just like you.
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