How to Invest in Property the Safe Way

| July 2, 2015 | 0 Comments

Are you considering the possibility of investing in property? It doesn’t matter whether you’re investing in one property, or you want to build a whole portfolio, you need to do it the safe way.

Do the Sums

Investing in property is a dangerous game, and if you get it wrong, you can lose a lot of money. That’s the opposite of what you want to happen, so make sure you focus on the numbers before you make any investments. You should be planning exactly how much you’re going to spend and how much you’ll have coming in from tenants each month.

Rental yield may seem like a complicated calculation, but it’s something that every landlord or property investor needs to understand. You should aim for a 10% rental yield. This means that each year, you should get 10% of your overall property spend coming back to you in rental income.

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Get Good Legal Help

Buying property requires legal help. There are a lot of loops you have to jump through before that property finally becomes your own. Nobody likes dealing with all this stuff, but that’s the way it is, so do yourself a favour and get a good solicitor on your side. It could make the process a lot easier for you.

Property lawyers are pretty easy to come by. Just make sure you hire one with a good reputation and history of dealing with these kinds of issues. Of course, your budget will also have to be factored in, so find the one that’s best for you and your circumstances.

Use a Property Manager

If you’re looking to build up a large portfolio of properties, it can get pretty stressful to look after them all by yourself. There are tenants to deal with, rent to gather and problems with the properties to fix. All of those things take time, and if you have lots of properties, it takes a lot of time!

You should definitely consider using a property manager if you don’t have enough spare time to dedicate to looking after the many properties you have in your portfolio. They will do all the heavy lifting for you, leaving you with a lot more spare time to do other things and improve your overall portfolio.

Buy in Up and Coming Areas

The location in which you invest is very important. Location is often even more important than the actual building itself. It’s location that dictates the amount of money a property will demand in rent. So, if you can combine a strong location with a nicely decorated and well-kept property, you’re onto a winner.

Your best bet is buying in up and coming areas. These are areas that are on the rise in popularity, but are not yet as expensive as they might eventually become. This means you’ll get a bargain and could potentially make a big profit if the area continues to rise in popularity and demand higher rent.

Property investment can be a great way to make money, but it’s risky too, so follow my advice above!

Category: Investment

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