Investing in property has always been a “thing” here in the UK, but over the past few years, it seems to be catching on more and more. Many people living in the UK are now feeling concerned or even disillusioned with pensions, so they are looking for ways to make an investment that will pay off in their future. You can also attribute some of the popularity of property investment on the fact there seems to be an endless amount of television shows dedicated to investing in property, flipping investment property for a profit, or renting properties out.
Where it used to be that it was only a select group that may consider property as an investment, today it has become much more mainstream. While there is no shortage of stories where people have made a good chunk of money off an investment property, there are also plenty of horror stories when people have walked away losing money.
If you’ve been thinking about investing in property but want to make sure you end up as one of those who profits from it, then it’s important to understand there is a learning curve involved. Jumping in without any knowledge or research is likely to lead to unfavourable results. Here’s a look at how you can start investing in property, and better your odds of making a profit.
Take Some Courses
If you’ve never heard of property investment courses before, now is the time to familiarise yourself with them. Sourced is an excellent example of a free online training program that is meant to give you the skills, knowledge, and tips that will help you get the most out of your investment. If you think of investing in property as a job, then it would make sense that proper training would help to make you more qualified and, therefore, successful in your job.
Through the courses offered by Sourced, you’ll learn about such things as how to find opportunities, how to best structure deals and the various strategies that can help you to make a wise investment. By the time you finish the courses, you’ll no longer feel like a newbie.
Speak to Other Property Investors
It can also be quite helpful to speak to other property investors asking about their experiences, tips, and mistakes they may have made. Again, it’s about gathering as much information as possible so that you can make informed decisions.
Follow the Property Investment Model
Having a blueprint of your goals and how you plan to achieve them helps you to figure out the steps and details. With that said, a property investment model can lay out the steps you need to take in order to be successful. A typical model to follow is:
- Start with arranging your finances
- Find a property that suits your list of priorities and matches your budget
- Find tenants (if you plan on renting it)
- Manage the property
- Evaluate the property to see how well your investment is doing (its growth)
- Grow your portfolio and invest in more properties
Figure Out Your Budget
This particular tip gets a heading on all its own because it is a very important step in the process. Figuring out your budget is essential and in order to be successful, you need to stick to your budget and not go over it.
If you don’t have the money to put up-front for the property, then obviously you will need to look at lenders. Many end up going the traditional route of borrowing money from the bank, but peer-to-peer lending can be another option that has grown in popularity as of late. P2P lending allows you to bypass the banks and other mainstream lenders and often spend less in interest on your loan.
Research Different Neighbourhoods
The next step is to start researching different neighbourhoods. You need to be aware of what neighbourhoods are on the rise and which have maxed out. If you want to invest in an up-and-coming neighbourhood, you may be able to get more bang for your buck, but then you need to be willing to wait to see the returns.
If you’d rather go with the sure-fire bet, then it can make more sense to invest in a property that is in an already-established neighbourhood. Of course, this means you need to be prepared to pay more for the property, but then at least you know it will hold its value.
Gather As Much As You Can
In order to be successful in property investing, it’s necessary to gather as much information, tips, and tricks as you possibly can. The more you learn, the more you talk to others with experience, and the clearer you are about your end goals, the more likely you will be to pick the right property.