If you are a novice
property investor looking for information on investment properties for
beginners, this article should help make your life easier. It details eight
tips that will help you in your quest to become a landlord.
1.
Don't believe the hype. It doesn't matter if it is
negative or positive hype about investing in property; do not take anything at
face value. Always consider whether the person or media that is putting out the
story might have ulterior motives. Anyone interesting in selling you property
or property products will only talk about the positives and the value of
investing in property. The media likes to sensationalise the negatives, because
that is what sells newspapers. You have to look at the evidence and seek
impartial advice and make up your own mind.
2.
You have to believe. You have to have a belief that you
can make money from property. At times it can seem as though the property
investing World is already saturated with people more experienced than you. You
have to believe that there is room for you as well. If you start off with negative
self belief then you are on a slippery slope to failure and before you know it
you will be another one of those that have "tried" property
investing, but found that there was no money in it.
3.
Decide why you want to invest and formulate a strategy around
this reason. Being clear why you want to invest in property can create
compelling reasons that will push you forward towards your goals, even when
things are not going well. Once you know why you are investing you can then
build a clear strategy based around what your goals and aims are.
4.
Research and make sure the figures add up. Don't just dive
into investing in a location because you have heard a rumour on a forum that it
"might" be the next property hot spot. You need to do your research
and your own due diligence. It will be hard work to begin with and it might
take you several months to find the right location and the right type of
property, but after that you can probably continue to invest in the same
location for several years, so the initial hard work is well worth it and
should pay off in the end.
5.
It's a numbers game. You have to be prepared to look at
hundreds of properties to find a deal that meets your criteria and that
corresponds with the strategy you have set out. This doesn't necessarily mean
making hundreds of phone calls a month to different estate agents or vendors.
You might achieve your goal by simply browsing the local newspaper which
normally has at least a couple of hundred properties in, although a more
proactive method is usually needed to be really successfully.
6.
Have effective exit strategies in place. One of the main
reasons many beginners fail in their efforts to become professional property
investors or developers, is that they don't have exit strategies in place. You
need to know what route you are going to take to get out of a deal if things do
not go according to plan. You also need to have an idea of how you are going to
off load the property in the long run, if you don't plan to hold onto it
forever.
7.
Take a long term view. Successful property investors take
a long term view of the property market. Many of the budding investors that
have failed, have failed because they wanted to make a quick buck. If you are
serious about learning how to become a landlord and being financially
independent, then you have to take a long term view. This will help minimise
your risk and will stop you from wanting to bail out if the property market
goes through a bad patch.
8.
Be careful of using property investment companies. There
are a host of companies that claim to be able to buy investment properties for
beginners, so that novices don't have to do any of the work themselves. Some of
these companies are good, many are terrible and a few are crooks. I would
advise you to learn the basics about what equates to a good property investment
first, before you trust others to buy investment property for you. That way you
can access the properties that they put in front of you and you will be able to
tell if they are good or not, without being totally reliant on what the
investment companies tell you.
If you are a beginner to
making money from property, then by following the tips laid out here, you
should be more equipped to go out and start hunting for those bargain
properties. Keep in mind that people progress at different speeds and don't get
caught up in the thought that if you don't become a millionaire in one month
through property, then it's not going to happen.