There are no hard and fast rules when it comes to successful property investment.
1) SEEK OUT INVESTMENTS THAT WORK FOR YOU
Don’t be influenced by what others are doing. And don’t get swept along by trends. Instead, look for property investments that fit in with your circumstances.
Every property investor has a different mindset and personability traits. They also have different family, work and other commitments. That’s why it’s crucial to align your property investments with your lifestyle and attitude to risk.
Although you’ll undoubtedly want to be aware of what other investors are doing, you don’t necessarily have to follow in their footsteps. You should always invest for yourself and your personal context.
2) UNDERSTAND YOUR APPETITE FOR RISK
Before you make any property investment decisions, you should decide if you want to take a high, medium or low approach to risk. Then you can devise your property investment strategy accordingly.
Don’t generate unnecessary stress for yourself by going against your natural inclinations. The level of risk you take in your property investment plans should align with your personality and values.
There are plenty of property investment opportunities out there; it’s just a case of finding ones that are right for you.
3) BE PREPARED TO CHANGE COURSE
As we’ve seen in recent years, many different factors can affect the market. There will always be ups and downs in the economy and uncertainties over house prices.
Although you may have done well from a particular investment in the past, there’s no certainty that it will perform the same way in the future. That’s why you should take the time to review your property investments regularly. And change course or walk away from a deal, if you think it may no longer work for you.
4) TAKE EXPERT ADVICE
Even the most experienced property investor shouldn’t fall into the trap of thinking they know best every time.
Confidence is a good thing, but overconfidence can be dangerous. Never be afraid to seek out expert advice and find out what professionals in different fields have to say. You may find that you don’t always know best.
5) TREAT PROPERTY INVESTMENT AS A BUSINESS
The successful property investor knows that this isn’t a hobby. Neither is it a form of entertainment, like gambling.
Property investment is a serious business, and although there’s the potential for high returns, you can’t expect them to come your way on the roll of a dice. Property investment is about research, learning, networking and sharing knowledge with others.
6) THINK LONG-TERM
It’s human instinct to focus on what makes us feel good today rather than in twenty years’ time. But property investment is all about planning for a better future.
What are your long-term financial goals? When would you like to retire? These are the questions to ask yourself when you develop your property investment strategies.
WOULD YOU LIKE TO LEARN MORE ABOUT PROPERTY INVESTMENT?
Register for our course: Houses of Multiple Occupancy (HMO) to find out how you could earn £30,000 – £35,000 income per year on every property.
However, there are some tips we can share with you that may help you to form a property investment strategy that plays to your strengths.