Thinking about Buying an Investment Property? – 4 things you should do.
So you’re ready to buy your first investment property, but you have no idea where to start and what decisions you will need to make. Don’t worry you’re not alone. That’s why Rescue My Pension exists – to help people who want to improve their financial futures through property investment. When you’re ready, sign up to our free email course (below) or even better, call us. However, we would like to get you started so here are some basic top tips on buying an investment property.
Buying an investment property – Develop a sound strategy.
The biggest mistake made by amateur property investors is to approach property investing without a strategy. Investors who don’t have a predetermined strategy in place are the ones who lose money or don’t make as much as they should. Before investing, take time to define some clear goals and put together a roadmap or strategy. This will set you apart from the majority of other investors. Developing your strategy is something we do as standard at Rescue my Pension, it enables you to identify the right investments and get the best results. Don’t even think about buying an investment property without a strategy.
Buying an investment property – Buy below market value.
If you want to be successful in property investment then you must always adhere to this rule. Buying at below market value is what sets property investment apart from all other investment types. You can’t go into a bank and negotiate an ISA rate or ask a stock broker to sell you shares below their market value, but you can purchase property below its market value.
And if you can buy an investment property below market value then why would you pay the full asking price? Sounds crazy but that’s what most people do. To source below market value property you could spend your valuable time researching your market, speaking with selling agents, networking with other investors who may know of a deal they can’t act on, or working with a reputable property investment company like Rescue my Pension.
Buying an investment property – Have your properties managed
You have to ask yourself do you want to be a landlord or an investor. Managing a property portfolio is essentially a full-time job. This can prove very time consuming for investors who have demanding careers and other demands on their time. Clever investors use skilled professionals to look after their portfolio so they can carry on with their day to day lives without having to cope with an additional workload. Trying to save money by managing your own portfolio is not an efficient use of your time, if you value your time you should have your property portfolio managed. Do you see Richard Branson flying his own planes?
It’s important to make sure you use a competent professional company to manage your property. The best way to do this is to get a recommendation from a fellow property investor or ask us for help.
Buying an investment property – Get systems in place, be prepared.
If you are well organised from day one, it helps avoid problems further down the line. Make sure you sort out your bank accounts, contacts, accounts, mortgage deals, etc. If you sort out a system, it can make owning a property portfolio an
enjoyable process, for those who fail to sort out the relevant systems it can result in time and possibly money wasted. Ask a more experienced investor or contact us to help you set up your own systems.
Buying an investment property – Next steps
Hopefully these tips have given you some action points to follow so when you are ready to progress you will make the right choices. If you haven’t got a strategy or would like further help you can take any of the following steps.
1. Sign up to the property email course below
2. Call one of our Asset Managers on 0207 148 3164
3. Or Request a call back and we will call you.