Property investment is a very good idea but it can be a lot of work and there are likely to be many problems along the way before you start to see a return on your investment. We are not trying to put you off property investment here – far from it – but it is important that you know the facts.
Choosing The Right Property
You will need to do a lot of research and make some good contacts if you are to buy the right property. This is not something that can be done half heartedly. Any mistakes here can be very costly. If you do not buy a property in the right area then your chances of renting it out or flipping it for a profit will reduce dramatically.
You also need to have the right connections. If you don’t then there is a good chance that you will pay over the top for the property. Estate agents can smell a novice property investor a mile off and they will use this to their advantage. Building the right relationships with these people takes time and you need to know what you are talking about otherwise you will not get the best deals.
Have You Done The Numbers Properly?
Quite a number of new property investors have fallen foul of this. They had not calculated all of the costs and there ROI ended up being a lot less than they were predicting or they ended up in a negative situation. This can happen with both buy to let and buy to flip property investments.
There are often a lot of hidden costs that only an experienced property investor will factor into the equation. An experienced investor will take all of these things into account and only make a purchase if all of the numbers “stack up”. This is an easy mistake to make for those new to the business and can be a very bitter experience.
With the Government squeezing more and more out of property investors all of the time it is crucial that you understand the purchase costs and the renovation costs that you will have to pay. If you become a landlord then there are ongoing costs there too.
Renovating Your Property
This can be a real headache. You need to have a reliable team of contractors that will do the work professionally and at the right price. If you don’t have experience of dealing with these contractors then there can be many problems.
Unfortunately not everyone is honest, and contractors can hike up their prices if they think that you have no experience. Then there are the quality and reliability issues. How do you know that a contractor is going to do a good job on your property?
It is a common problem that contractors will not turn up when they are supposed to. They disappear to other jobs leaving your renovation schedule in tatters. You can spend your life chasing these people and it is all very stressful.
There Is Another Way
These are just some of the problems that you can experience with property investment. We haven’t even mentioned problems with solicitors and trying to find good tenants.
We can provide you with a totally “hands off” approach to property investment. This way you reap the rewards of property investment without any of the headaches. We have a very experienced property investment team which includes first class contractors and solicitors.
We have successfully completed several property investment projects that have all made a very good return on investment. For a no obligation discussion please contact us here and we will fill you in on all of the details.