When you go it alone in property investment there are so many things to consider to make your project a success. Many newcomers make critical mistakes that end up with them making a loss. In today’s video you will learn about 6 property investment mistakes that you must avoid.
Property Investment Mistake 1 – Not Speaking To Letting Agents
You must speak to the letting agents in the area before you buy a property. This applies even if you know the area very well as it is impossible to be aware of every street and postcode and each area will have a different nuance. A local letting agent will have more knowledge of the area and will be able to tell you that a property in a particular street will be a hard or easy let.
Property Investment Mistake 2 – Not Doing Enough Comparisons
A lot of property investors make the mistake of not checking local comparisons. Be prepared to spend time on this and check what the comparisons are telling you about renting or selling properties. Find as many properties as you can in a half mile or quarter mile radius that compare with the one you are thinking of purchasing. What are these properties selling for now? What price did they sell for a year ago?
Property Investment Mistake 3 – Checking The Wrong Sold Price Data
Don’t check the wrong sold price data. Rightmove and Zoopla will have sold price data and you can check within a certain area or radius. But there might not be any recent data. You can look back further in time but this data could be unreliable. Get as many sold price comparisons that you can from different sources.
Property Investment Mistake 4 – Not Visiting The Area
You have to physically check out your area. If the area is far away then it is OK to speak with local agencies, letting agents and property sources but if you can get to the area then visit it during the day, at a weekend and in the evening to see what it is really like. Have a drive around or walk the local streets and form a view of the area.
Property Investment Mistake 5 – Not Following Your Intuition
You must trust your intuition. There are many aspects to a successful property investment and if any of them do not feel right for you then you must have the nerve to just walk away. Always remember that there will be other deals on the horizon that will feel right. If you have a bad feeling about a company or an individual that you need to close a deal then look elsewhere as there are usually lots of good alternatives.
Property Investment Mistake 6 – Being Desperate
Being desperate over a deal is a very common problem. You may be chasing a lot of offers and be tempted to offer a little bit more to close the deal. Being desperate can mean that you end up with the wrong property at the wrong price. You need options. View multiple properties and put offers in on multiple properties.
How You Can Avoid Property Investment Mistakes
If you become a partner with us at CPI you do not have to worry about any of these critical mistakes. We have years of experience in sourcing the right properties and we check everything thoroughly to ensure that the project will be successful. For more details about our “hands off” property investment partnerships please contact us.
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