When you’re embarking on any large project or financial undertaking, it’s important to be as prepared as possible. Unfortunately it is the case that many first time property investors fall into traps of their own making – everything from not having a strategic plan for investing to buying the wrong investment. The following property investment tips can help you avoid some of the common mistakes that first timers make.
1. Not Having Finances Organised
Being properly prepared when it comes to property investment means having your personal finances all in order, including keeping all relevant documents in a handy folder for ease of access. One of the mistakes that first time investors make is that in the excitement of finding a great property they get ahead of themselves and forget that they need to have everything in place so they can go ahead and purchase it. They should also remain in contact with their bank or other lender so that they can take advantage of opportunities as they arise.
2. Long Term Investment Strategy
One of the most important property investment tips you’ll hear is that having a 10 to 15 years strategic plan is the best way to build a successful property portfolio. This is because having the plan that you can refer to regularly will keep you on track and provide a way forward even if you hit occasional problems. It is also because property investing should be seen as a long-term project, not for simply one-off short-term gains. You can review your plan on a regular basis to ensure that it still matches your financial goals and personal circumstances.
3. Falling In Love With Your Investment Property
It’s one thing to fall in love with the idea of being a property investor. It’s another thing entirely to fall in love with a particular property that you think you’d like to buy as an investment. One of the property investment tips from experts is to look at your first investment with your brain, not your heart. It is unlikely that you will ever live in the property, so you should look at it purely from an investor’s perspective – will it provide good returns, will it attract high quality tenants, be it be easy to maintain etc.
4. Failing To Conduct Proper Research
In a way this comes back to the original point about being organised. Dipping your toe into the property market without first learning as much as possible can be a disaster and make mistakes much more likely. You can do a lot of research on factors such as median apartment prices and rental returns and good locations for investments online, however it is also a good idea to look for property investment seminars that can give you a head start.
5. Not Getting Professional Assistance
Getting professional assistance when you’re first starting out in property investment will not only give you a guide to the market and the steps needed to become an investor, but it will also give you access to an expert’s perspective and their experience. The professionals at Ironfish, for example, can help you to create a long-term tailored strategic plan based on proven investment methods, as well as give you access to opportunities in the market.