Investing in property is one of the most popular ways of growing your money. If you invest in the right properties at the right time, there’s every chance of making a profit with property investment. But, investing in real estate isn’t always smooth sailing. If you’re keen to get a portfolio up and running, here are some simple steps to follow.
Keep an eye on the figures
Success in any kind of investment boils down to the ability to make money. If you’re thinking of buying a house or a flat, it’s essential to keep a close eye on your finances. Sit down with a financial advisor, work out how much you can afford to spend, learn more about fees and arrange some appointments to discuss your mortgage options. It’s important that you have an accurate idea of exactly how much it will cost to acquire a property before you put in an offer.
Research your target market
Whether you’re planning to buy and then sell or buy to let, it’s hugely beneficial to research your target market. When you’re buying a house to call home, you only have your own style, taste and lifestyle to worry about, but when you’re investing to make money, you have to bear the buyer in mind.
If you plan to rent the property out, consider where your ideal tenant would want to live, how much they would want to spend and the kind of features they would look for. If you’re hoping to sell the property, find out more about desirable locations, house prices and what types of properties are most appealing to the kind of buyer you’re hoping to attract. If you’re targeting young families, for example, look for homes with large kitchens, gardens and easy access to good schools.
Keep in touch with local agents
It’s really useful to have a positive relationship with local real estate agents. You can use their knowledge and access to inside information to keep your finger on the pulse and find new properties that match your requirements. It also pays to know where to look to find a real estate agent to help you sell your home. Get in touch with agents, maintain contact, and ask them to keep you in the loop. Even if you’re not quite ready to buy or sell just yet, it’s useful to be aware of what’s going on in the market.
Be prepared to negotiate
If you’ve found the perfect property, and you’re keen to take the next step, be prepared to exercise your negotiation skills and strike a deal that suits you. Investment success is all about making as much profit as possible, so the lower the purchase price, the higher the chance of getting a return on your investment. You can increase your chances of getting the best price by paying cash and being able to exchange quickly.
Are you hoping to make money by playing the real estate game? If you’re searching for your next acquisition, bear these pointers in mind to maximize your chances of success.