Property Investment Advice – 3 Tips Every Investor Should Know
Buying an investment property is the best financial decision most people ever make.
Among other things, if often sets them up to purchase more properties in the future, eventually freeing them of the rat race forever.
Unfortunately, other times, people buy properties and never enjoy their full potential. Their properties may even become burdens.
This is why it’s so important that you follow proven property investment advice before you actually spend any money.
3 Pieces of Property Investment Advice Every Investor Needs
While no one would blame you for being excited about the prospect of earning monthly checks from your tenants, don’t start investing just yet.
Instead, consider the following property investment advice, so you’re set up for success.
1. Take. Your. Time.
Speaking of preparation, this first piece of property investment advice cannot be stressed enough.
Many people go right from learning about owning rental properties to approaching lenders in the span of about a week.
In the span of a year, those same people will usually go on to sell it because they rushed into their decision.
So, take a deep breath.
Unless you have a large sum already saved away, you’ll need to spend time saving up for a decent deposit on your investment property. That, alone, may take some planning as you learn where you can cut costs to enhance your budget.
Use this time wisely by researching the neighbourhoods where your money will be best spent and tracking how much homes tend to go for in those areas.
2. Don’t Assume Smaller Homes Are Best for Beginners
When you’re in the market for your first rental home, it might seem best – even obvious – to start small.
After all, that means having to save up less for your deposit. It may also seem as though it would mean having to spend less on potential maintenance costs or repairs.
You might also assume that, if things don’t work out for some reason, it will be easier to find buyers if your rental home is affordable.
Although this thinking is well-grounded, it’s also flawed. The whole point of purchasing a rental property is to rent it out.
So, instead, focus on finding a home that is going to be easy to rent.
Hypothetically, if you knew you’d have a long line of potential tenants begging to pay you ever month for your rental home, would you care about the price?
Of course not!
The size of the home shouldn’t matter when you’re first getting started. While you shouldn’t go outside of your budget, stay focused on finding a home that will be easy to market to potential tenants.
3. Stay Away from Fixer-Uppers
Finally, a lot of property investment advice will tell you that the best strategy is finding an old, rundown home, purchasing it at a massive discount, and then renting it out once you’ve fixed it up.
If you have experience repairing and renovating homes, this might be ideal.
For the rest of us, this is never a good idea.
It virtually guarantees a long, laborious, and expensive process before you’re ever able to cash your first rent check.
Again, find a home you know is going to attract renters now, not after you’ve sunk countless hours and dollars into – hopefully – making it that way.
One Last Piece of Property Investment Advice
Follow the property investment advice above, and you’ll find it much easier to pick a profitable home that will set you up for future success.
However, here’s one last tip for fast-tracking those desired results: seek out a mentor. When you learn from someone who is already enjoying the outcomes you want, everything about property investment becomes much, much easier.
That’s why I started A Team Property Group. If you’re serious about investing in properties, contact us today to learn about all the ways we can help you reach your most ambitious goals.