Great tips to kick-start your property investment journey
Category RealADVICE
Every true investor knows the value of having a property under their wing. Property investments are a great way to build your wealth and they often have positive returns. On the contrary, they can also be a money-grabber due to bad markets and lack of investment skill. The big plan would be to start off on the right foot.
Here's how you successfully kick-start your property investment journey:
Define your objectives
Undoubtedly, the most prominent objective of investing in property is the ability for long term capital growth and ultimately creating wealth. The first step of any property investment journey would be to define the objective and iron out the goals you wish to achieve.
For example, perhaps you wish to purchase a beach house for that one day when you and your spouse retire. Purchasing that property now will also enable you to receive an income through holiday lettings or monthly rentals. It can be considered as an investment with the potential to pay itself off.
When setting your goals remember to set realist targets.
Assess your finances
Once you know what you expect from your investment it would be wise to assess your finances. This ensures that you actually can afford an investment property. It will determine how much you can spend and what you need to borrow from lenders such as BetterBond. Remember to take into account additional costs for renovations, repairs, maintenance, and more.
Develop a plan
Since your finances are in place you can now create a solid plan to aid your goals becoming an attainable reality.
Your plan should include;
- your current situation,
- the progress you wish to make in the future,
- how you will get there,
- and the time it will take you.
Research is key
Do not get swayed by the first property you see. The key to success is to research and learn about the property market, the types of property that will suit you best, as well as the location you are looking into. Location is everything when it comes to property.
Property inspections
When you have found that special property you see yourself owning the next step would be to have it inspected by professionals. Most issues cannot be seen with the naked eye and only an expert can provide you with a thorough assessment.
Cover yourself
If the property in question meets all your expectations and inspections then go ahead and make that purchase. It will be good to protect your investment from any losses by taking home insurance. Most insurance services cover against theft and natural disasters. Be sure to notify your insurance company that you have tenants occupying the property. This will avoid any future issues relating to technicalities. The tenant may, however, be liable for their own insurance for their personal contents in the home. Remember to compare insurance quotes for the best cover possible.
Attracting good tenants
Your next goal should be to attract and keep high-quality tenants. Get an idea of the type of tenant you want and then advertise accordingly to attract them. First-time tenants will appreciate if the property is fully or partially furnished. This will add further value to your property. Ensure that you screen your potential tenants in order to spot the bad ones. The longer you can keep a good tenant the better will it be for you. This will reduce your costs and maximize profits. Remember, as a great landlord, you will need to keep up with repairs and maintenance for the property.
If you are struggling to attract the perfect tenant, our specialized agents can assist you in every step of the process. Contact Realnet today to find out more.
Author: RealNet
