Your Stress-Free Guide to Positive Property Investment
Are you seeking a ‘one-stop shop’ of information regarding property investment?
Perhaps you have a friend or colleague who has made a success of their portfolio. Or you might be in a new position of financial advantage, and you’re keen to invest it into something that will grow. Whatever your motivation might be—you’re in the right place.
Property investment is a popular endeavour that offers several advantages to those who choose to pursue it. It can be a very healthy choice for investors of varying economic position. However, it does come with certain potential risks. As with all financial ventures, the best way to avoid being stung by financial loss is to be as informed as possible before signing on any dotted lines.
Why Property Investment?
There is an attractively wide range of options within property investment. The primary options to consider include:
- Buying a property to develop and sell on.
- Buying a property to rent privately or with a housing group.
- Investing in a fund that invests directly in property.
All three offer great potential for a decent return on investment if the situation is well researched and found to be a potentially positive opportunity. You could co-invest with another party. Or if you have the funds in place to go it alone. Decisions such as these can be made once you have a fuller view of the current market and the pros and cons of property investment as a whole.
What can be the potential Investment Risks?
As any seasoned investor (of any kind) will know, there is always an element of risk present when parting with significant funds for a new venture. Even if the housing market is favourable when you start, the situation can alter very quickly. The market can slow down. Once highly recommended, tenants can become non-payers. You can run into issues with housing authorities or squatters. In short, it’s not an entirely ‘safe’ option.
If you’re over-invested with too much of your money tied up in property, then you run a greater risk of economic difficulty or collapse if the housing market is to slow down at any time. To prevent an investment crisis, it is a good idea to diversify your portfolio where possible. Ensure you have reliable sources of income or financial back up available to you. This is especially true for novices or those with significant funds invested.
What do I need to consider before making any Property Investment decisions?
Before you make any final decisions regarding property investment, there are some key factors to consider seriously. Hold off from diving into making any offers just yet. No matter how unique a deal might seem or how impatient you might feel, take your time. By waiting just a little longer and becoming more informed, you can significantly improve your ultimate chances of success by holding off a little longer.
Ask yourself the following questions to keep yourself on the right financial management track:
Have I consulted an expert who is qualified to advise me accurately and impartially?
Speak to someone who can offer more profound insight into the property investment area you would like to move into. By doing so, you’re setting yourself up for far greater chances of success.
Am I acting on impulse, or are my choices founded on thorough and appropriate research?
Sometimes a glossy sales publication or a colleague’s success story can make us feel we need to rush or we might miss out. Reflect on your motivations to make informed, wise choices.
Do I have the necessary financial backup in place if I were to run into any difficulties?
Not only will you feel more confident in your new venture with sufficient support in place, but it will mean you are more flexible if a crisis or fresh opportunity presents itself later down the line.
What does my professional and personal support network look like?
Consider who you have in your network who could support this venture. Perhaps you have a friend who has experience in this area. Or you might want to enlist the formal support of a mentor.
Take Your Chances—Wisely!
No matter how much research you feel you have covered, it is always wise to discuss all of your property investment options with a trained, qualified professional. By enlisting the support of a dedicated financial advisor, you may become aware of opportunities that you may not otherwise have looked at. These steps can help you to feel confident in your decision making. This will aid your later ventures exponentially.
It’s a great idea to arrange regular check-in meetings with a trained, experienced financial adviser from the start of your property investment career, not at a crisis point. As a newcomer to the property market, it can save you both time and money to have an impartial voice of guidance present to help you on your way. Although literary and online research is beneficial, in-person support is most invaluable.
Property investment is a highly viable option for many types of investors. Regardless of your background or experience, there could be some high-yielding opportunities waiting for you in your future. All you need is the right expertise to lead you in the right direction—along with a strong faith in your ability to adapt as your journey continues to progress.
Do your homework. Keep open to new options and stay informed of recent changes to the market you hope to invest in. You don’t need to invest before you find your feet. Doing so will likely lead you to a long-lasting and far more profitable investment pathway instead of a short-lived or stressful experience.
Finally, always remember:
Informed investment decisions lead to better finances and healthier mental wellbeing!