This is a blog post for those of you who are new to property investment and want to learn some tips from someone with experience. I will be discussing 5 things that I wish I knew when starting out in this industry, as well as what has helped me grow my business over time. This is not an exhaustive list by any means! However, it should give you enough information to get started on your own journey towards success in property investment and financial freedom!
Research and Analyse the Market
This is one of the most important things to do when you want your investment to be successful. Do not buy any property without doing some research first!
It is imperative that you keep up with current trends in the market and make sure that whatever properties you are looking into purchasing have a high chance of performing well over time. What we mean by this, is not to just look at the purchase price, but assess the area and rental demand as well. It is important you conduct a full holistic review of the property before taking the plunge!
It is also important to keep your eyes open and analyse what opportunities there are in the market. You might even strike gold and find yourself an investment hotpot. Though sometimes, you may come across an opportunity that looks too good to be true! Don't let this put you off as sometimes these can lead to great investments with high returns. On the other hand, if something seems too good to be true, it probably is!
Make sure you understand the risks associated with a bad investment and have risk management strategies in place. Don't forget that your gut instinct can help guide you in the right direction.
Size Matters
When it comes to property, size does matter!
Make sure you look into what properties within your budget can offer in terms of potential rental yield and capital growth. While there is nothing wrong with settling for a smaller place that fits your needs (and allows you to save more money for other investments), make sure at the end of the day you are happy with your choice!
When it comes to property, size does matter!
Don't Bite Off More Than You Can Chew!
One of the biggest mistakes when getting into property investment is biting off more than one can chew. Make sure to consider multiple property investment exit strategies and when it comes to buying properties, don't invest all of your money in just area. Spread out your investments so that if something goes wrong, you don't lose everything. Spread your investments so that the success of one place will make up for a loss in another one!
Property Management
If you are planning to invest in multiple rental properties at once, it is important that you have a property management team on your side. This will help when it comes to maintaining the upkeep of your properties and ensuring they all run smoothly without too much maintenance work!
Many people tend to fear having strangers in their house but if properly vetted, you should have no issues. In addition to this, a property management team can also help with finding tenants and repairs as well as all other related services!
Be Ready For the Unexpected
There is never an easy way to say it but being ready for the unexpected will always be important when investing in properties. You may experience issues that require you to spend your hard earned cash, but if you preplan and save a safety net ahead of time, you should have no problems in the long run!
Be Patient
Last but certainly not least, patience is key!
Property investment requires a lot of hard work and it can take time to see returns. If you are impatient or easily discouraged by this then property investment may not be for you. However, if you keep working towards your end goal and eventually the results will definitely come in as long as you have done your due diligence.
If you are impatient or easily discouraged, property investment may not be for you.
Summary
There are a lot of factors to consider when investing in property. In this blog post, we've outlined 5 things you should know before starting your journey into the world of property investment.
You'll want to do research on what's going on in the market and make sure that you're not biting off more than you can chew by spreading out your investments among different properties. Property management is also important if you plan to invest in multiple rental properties at once because it will help with keeping them running smoothly without too much maintenance work or tenant issues!
Be prepared for the unexpected from time-to-time as well--it won't be easy but being ready ahead of time will make any difficulties easier to manage down the road.
Lastly, patience is key: it takes time for your investment to pay off but if you do your research and work towards it, the results will definitely come in.
How can Property Store help?
Property Store is a Property Management CRM Software designed by property investors for property investors. Our software solution will help you by lowering the barriers of entry of property investment. For new investors, the Investment Calculator will:
Help you stack the deal allowing you to easily determine whether the area or property is a good investment
Help you determine how much capital you need to produce in order for the deal to go smoothly.
Calculate the figures for multiple exit strategies so that you can easily determine which exit to purse and which one to use incase the first one fails.
Help by tying all of your information together and helping you manage both your team and your portfolio.
Help you mortgage rate stress test the property incase the rates suddenly go up.
Though there still a lot to learn in property investment before you commit to our CRM so for now, you can take advantage of our free trial so that you can test things out first.
Want a free trial of Property Store? Sign up now and get your first week free!
Not convinced yet? Click here to attend our free webinar where we will show you how Property Store can support you in your property investing business.
Want to see more of Property Store? Head over to our features page where we recorded a live demo that you can watch to see Property Store in action.
Got a question? Check out our Frequently Asked Questions Page for answers to common concerns or you can contact us here.
Want to learn more about property investing? Check out our blog about the different property investing strategies so that you can determine which one is right for you!
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