This web page will give you 5 top Investment property tips so that you can improve your property investing productivity.
Doing thorough research and doing your property due diligence is one of the main reasons individuals either become successful at property investing, fail miserably or have mediocre success.
Do not skimp on your property research. Whether it be skimping on not researching the area properly such as; not talking to local estate and letting agents or investors. Or whether you don’t speak to the local people/neighbours in an area you don’t know, but plan to invest in, what ever it maybe, if you skimp on research you are potentially building up huge problems for yourself.
You wouldn’t try to do major electrical work without being correctly qualified so why would you attempted to put thousands of pounds at risk by attempting to make money from property investing without the correct property education.
Thousands of pounds are lost everyday in the UK by would be property investors who don’t understand what they are doing or who have listened to investment property tips from the wrong sources. To be a success in this business you must undertake a program of continued education.
The property market is a fast moving industry and as such is an industry that requires you to be constantly learning and updating your skills so that you can deal with any changes that come along.
This is where it is useful to bookmark a site like our one here that deals with UK investment property and buying overseas property so that you can get up to date information on the best ways to profit from property. It is also worth keeping an eye on the top investment property forums. This way you can find out about all the best ways to continually make money from investment property.
THE RIGHT AREA
Ideally you need to pick an area that is good for both renting property and selling it. This way you have two exit strategies, if you wanted to sell it, but were struggling to do so, you have a good chance of being able to rent it out, and visa versa. This is key as you want to have as many different options with your property as possible.
It is generally also a good idea to try to be near to universities, colleges, hospitals and to be within walking distance to good commuter links to the main towns/cities.
Always be ready to haggle. One of the best investment property tips that some investors follow is that on many of their deals they consider that they haven’t done their job properly if they get their first offer accepted.
If they get their first offer accepted it means that they offered to high and they could have potentially got the property for less. They may still have got the property for a good price but they have still over paid. Strive to always be negotiating. Your capital is your life blood and you don’t want to leave any more of it in a property that you absolutely have to.
DO THE MATHS
Make sure the maths adds up. At the time of writing, most lenders prefer to only loan properties whose rent covers the loan by at least 125-130 per cent. You can get loans that require less rental cover, but you would be limiting your lender options. However, this increases both yours and the lenders risk, hence many times this will result in higher charges and perhaps a higher deposit required to be paid by you.
You must strive to have as many exit strategies as possible. We have already touched on two – renting the property out and selling the property.
An article on investment property tips would not be complete with mentioning that many property investors make sure that all the property contracts they do are assignable contracts.**Nothing on this website should be confused with financial or legal advice. If you need this, or any other type of advice, please seek the help of a competent professional. In addition, because real estate laws change all the time and differ from state to state, and even city to city in the same state, everything in these pages should be considered general marketing advice and ideas. Please see link to full Disclaimer at the bottom of this page.