Even a cheap property can cost a lot of money and so anyone thinking of taking the plunge in property investing need to give themselves the best possible chance of getting it right from the start. Once you sign your first purchase contract you’re committed and there’s no going back. If you make a mistake, or discover that property investing really isn’t for you, extricating yourself can be a messy business.
On the other hand, if you start off properly prepared and aware of what being a property investor will involve for you, personally, then you have every chance of making a success of it and finding it a positive and worthwhile experience.
This short report is a brief check-list of some of the things I think it’s helpful to think about before starting in property.
Some might seem obvious but many are much less obvious. I’m often surprised at how many people will happily spend hundreds of thousands of pounds on a property or properties without having first thought about some of even the most basic aspects of being a property investor.
For example, many new investors never consider what their exit strategy is until they’ve purchased.
Others don’t think about how much time being an investor takes, even as a part-time investor, and how that can affect their investment decisions, or the implications for where, geographically, they are going to buy their properties.
Few think ahead to how active they want to be in their business. And many purchase a property without first taking proper accountancy advice as to the best way to structure their property ownership, and then have to spend time and money unravelling it and starting over correctly.
A little bit of preparation and planning in advance is time well spent and makes all the difference.
Here’s to successful property investing
Peter Jones B.Sc FRICS
Chartered Surveyor, author and property investor