3 Things to Consider Before Investing in Property



When it comes to investing, putting your money into property is almost always a smart move. There’s significantly less risk involved compared with other forms of investment such as stocks and crypto, and over time your investment will grow much more than money simply being left in a high interest savings account. While the housing market fluctuates, there’s always demand for places to live, meaning your venture will never become obsolete; simply put, an investment in bricks and mortar is ‘as safe as houses’. Providing you’re properly insured to protect the building itself from damage, your investment in property is something that could be passed down through generations, or could be sold whenever you like or need. So whether you’re looking to flip houses and sell them on to earn money, or build an empire by renting them out, here are a few things to consider.

 

Financing the project

When it comes to investing, it takes money to make money. First things first you’ll need a way to finance your initial investment, whether that’s the deposit for a buy to let mortgage, or funds to purchase an auction property upfront ready for renovating and selling. This could be anything from an inheritance lump sum, savings or a bank loan- but consider how you’ll pay for the actual investment itself so that it can start earning you money later on. If you’re financing using a loan then you’ll need to factor in how the interest rate will affect your profits until it’s paid off.

 

Research, research, research

Getting clued up and doing your research is the best way to go about any financial decision, and investing in property is no different. It’s not as simple as purchasing a property you like the look of, you need to have a strategy in mind. For example, if you’re going down a renting route then flats and apartments in busy towns and cities tend to do well with young professionals, and allows you to start with a small property to begin with. If you want to appeal to the student market then a large property you can rent by the room that’s close to a college or university is your best bet. When it comes to renovation for a property like this, you’d want robust and easy to clean without the need for luxury fixtures and finishes. If you’re buying and selling for a profit then knowing about things like ceiling prices and building restrictions is going to be essential research. Be sure to seek expert advice for anything that requires it, if you’re going to jump into property and get it now then a real estate agent will let you know the ins and outs. 

 

Which direction will you go in?

The direction you go in with property investment will depend on everything from budget to experience to personal preference. The available time that you have will also play into things, if you’re doing this full time vs in your free time that will affect the type of properties and investments you should make. From holiday rentals to flipping houses, developing your own properties and more, there are so many things to consider so think through your strategy and the route you’re going to take.