When starting anything new we are all prone to making mistakes, but when you are talking about property investment and securing your financial future it’s best to learn from the mistakes of others, and take some good property investment advice.
Here’s a list of the four most common mistakes novice property investors make so you can avoid them
Property investment advice, mistake 1: Not buying below market value
One of the best things about property investing is that you can buy an asset for less than its market value; this sets it apart from other asset classes such as shares or currency trading as you can increase your wealth on paper from day one. For example, if a house is worth £100,000 you maybe able to acquire it for £90,000, this would make you a paper profit of £10,000.
This sounds fantastic and it is, yet so many people new to property investment will buy a property at its full market rate, because they either don’t know they can buy below market value or they don’t know how. Buying below market value is simple, you can liaise with your local estate agent and ask them to inform you of when any properties come to market in your area at a reduced rate, you could try an auction or simplest of all use a reputable property company like Rescue my Pension as they should always source you property that is below market value. Fail to take this property investment advice and it will be one of the most expensive mistakes you can make.
Property investment advice, mistake 2: Only sticking to local area
Many investors new to property investment understandably want to begin investing in their local area as this is what they feel most comfortable with. However this is a rookie error, as the possibilities and opportunities are immediately restricted
Researching properties today is a lot easier than it was 10 years ago. The internet has made it possible to assess in depth areas you may have never visited before. Through websites like upmystreet.com and Google Street Maps you can get a real feel for an area. This helps you make an informed decision on whether the property you are assessing is a viable rental proposition.
Be open and receptive to all localities and you stand the best chance of getting the best property investment deals for your portfolio.
Property Investment advice, mistake 3: Having no strategy
The investors who jump straight into property investment with no predetermined strategy are the ones most likely to lose money or not make as much as they should. Before you proceed, set some clearly defined goals and put together a roadmap or strategy. This will set you apart from the run of the mill investor. Developing a strategy is something we do as standard at Rescue my Pension, it enables our clients to identify the right investments for them and get the best results. Ignore this property investment advice and you could end up paying for it financially.
Property Investment advice, mistake 4: Analysis paralysis
Analysis paralysis is a terrible disease that afflicts many people wanting to get started in property investment. Analysis paralysis is not taking action due to over analysing a situation or put simply – procrastinating.
Taking the first step in anything new is always hard and many people wanting to get started in property investment sometimes never do because of fear. Being scared of taking the first step is understandable but not taking any action at all will cost far more than any mistake you may or may not make.
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