How to invest in property for beginners
One of the main reasons that people go into property and real estate is because, compared to some other investment approaches, is relatively easy to pick up and learn. That doesn’t mean however that it doesn’t come without some key learning points to keep in mind.
If you are a complete beginner to property investing, then we are here to help you. We have put together our guide on how to invest in property for beginners, giving you all the top tips that you are going to need to get off of the ground and hopefully make some money in no time at all.
Set your goals first
The absolute first thing that you should do when it comes to investing in property; is consider your goals. Both those that are short-term and those that are longer-term too. This is because these goals will form a key part of how you get there and of course, what you do along the way too.
Of course, you may not know exactly what your goals are, or these may change as you progress and learn, but, having a basic idea of what you want (for example if you are buying a property to renovate and sell on, or a property to rent out) will help you to plan those first few months of your investment.
Know your strategy
Along with setting goals, you also need to think about your strategy too. You need to consider what it is that you want to do with the properties that you buy. Some will want to rent them out as standard residential properties, to tenants, whilst others will prefer to take the commercial route.
You may also be someone who wants to aim for student accommodation or perhaps create other sorts of HMOs. You may even be a property owner who wants to create a vacation rental that they make money from during the holiday seasons.
It is down to you and your set-up.
This is also a great time to decide whether or not you want to simply buy one property, or if you are thinking about having a varied portfolio of properties to really maximise your investment. This may sound like a tempting idea, but for many, it is better to start small and then grow over time.
Educate yourself on the costs
The main cost of buying and renting out a property is going to be the purchasing of the property itself. But, what many beginner investors do not realise is that there are lots of other costs that are associated with it.
There are those initial costs, such as stamp duty and legal fees, as well as more ongoing costs such as improvements on the property and rental maintenance too. These can all build up and cost you money over time.
Understand the market and your options
Once you know how much you can afford to buy (and have spoken to appropriate lenders about your borrowing) then you can start to think about the types of properties that you can afford. You want to consider the areas that you think are going to be right for you and also the types of properties that are going to best appeal to your target tenant too.
This part of this process should never be rushed and should be something that you pay attention to. Then, when you have found the right property, it is time to finalise those mortgage arrangements, and star to become a property investor.
It can take some time to get to this stage, but we can promise you that it is going to be worth it in the end. Especially when you start to see a return on your investment and make some money for your future too!