Anyone can become a property investor – you don’t need to pass an exam or hold a licence.
However, to be a successful property investor, you should learn as much as you can about your chosen field of property investment – or as many fields as possible, so you can determine which is right for you.
If you’re considering investing in residential or commercial property to generate rental income or long-term growth, here is some general advice on research, location and planning to help you set off on the right foot.
Plan for the long and short-term
It’s important to set goals of what you hope to achieve in terms of regular income and future portfolio growth.
It also helps to stay motivated if you’ve written down what you ultimately want to achieve and set milestones to mark stages in reaching this objective. Bear in mind you may encounter setbacks – and you should be prepared to adjust course when necessary while keeping the overall plan in mind.
Make sure you take into account predictable costs, for example, ongoing maintenance. You should put away a percentage of your monthly property investment income to ensure you can meet expenses, such as new boilers or upgrading windows or doors to improve EPC ratings.
It’s vital to keep up to date with regulations and legislation if you’re renting out properties. New standards are frequently introduced for EPC ratings – and will apply to pretty much any property investment, commercial or residential. Therefore, it pays to ensure your property is as energy efficient as possible.
Research, research, research
To avoid making costly mistakes, you need to make informed decisions. This means doing your homework.
First, research the current property market and house prices in your chosen area. Initial information can be obtained from UK House Price Index, and you can dig a little deeper by using Rightmove, Zoopla and talking to local estate and letting agents.
After you’ve researched the area, turn your attention to the property. If you need expert advice, take a professional with you when you view. If refurb work needs to be done, the sooner you know about it the better.
Once you’ve researched the location and the property, you should read up on market conditions and current trends. Finally, take all the information gathered and see if it stacks up against your short- and long-term goals. Is the property likely to perform in the way you hope?
Choose your location carefully
Choosing the right area for property investment is essential to obtaining the best return on your investment.
Take a fresh look at areas you may previously have dismissed. A lot has changed in recent years. Huge numbers of employees worked from home during the pandemic, and many did not go back to the office.
Remote and hybrid working has dramatically increased and, in its wake, it has brought a rise in investment in properties outside major cities.
While cities such as Birmingham, Liverpool and Manchester offer investment opportunities thanks to regeneration, smaller towns close to these cities are also enjoying a boost.
First, check out the location. Does it have the market you’re looking for? If you’re planning on renting out a property – is there a ready waiting list of tenants? If you’re looking at commercial premises, are there other businesses nearby?
Learn from others
The most crucial factor for anyone new to property investment is to show a willingness to learn from others.
Don’t be afraid to ask questions. You’ll be surprised at how many professionals will happily share their knowledge with you.
Most investors aren’t experts in every aspect of property investment. They rely on the skills of others, such as builders, architects, surveyors, and financial advisors. If you lack experience or pertinent skills in certain areas, don’t be afraid to look for a mentor.
Would you like to learn more about property investment?
Property Investing Masterclass – An Introduction to Property Investing
This course will provide you with an introduction to property investment, whether you’re new, intermediate or experienced.
Looking for a mentor? Then let’s schedule a call and see how we can help – click here: https://calendly.com/mark-lloyd1
