We are about to reveal the biggest property secrets….
Property Secrets? There are none!
Yes, there is a whole industry built on these mythical property secrets but they are not secrets, just knowledge that you haven’t learnt yet and the good news is that this knowledge is free and accessible.
Many of the “property secrets” are just common sense principles and yes, you may need a refresher but you certainly don’t need to pay for the privilege. In this blog we will tackle some of the core principles of property investment that you can use as reference when you build your own portfolio.
You should always buy below market value
Unlike many other assets, property can be bought for below the market value. In some circumstances you may be able to negotiate a discount. This is not to be confused with knocking money off the asking price. The asking price is just an opinion of value. To establish the current value you may need to look at recent selling prices of similar properties in the area or get a RICS (Royal Institute of Chartered surveyors) report. A RICS report is the same report mortgage lenders use to establish the value of a property. At Rescue my Pension we use RICS reports as standard when assessing the value of an investment.
You should always invest for the long term
Many people have made money by taking a short term view on property but probably just as many have lost money. Investors who take a long term view when investing in property will nearly always make money. Taking a short term aggressive approach to property investment is not a strategy Rescue my Pension implements and neither should you. Property investment should be viewed as get rich slowly, not get rich quick.
You should never sell a property
Many people new to property investment have poor exit strategies; often this includes liquidating the property portfolio in years to come. Not only does this require a lot of work it is also inefficient from a tax perspective. The savviest investors release equity from their portfolio which can be tax free. When you start out on your property investment journey you should always have a strategy to release money from your portfolio further down the line.