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Five Mistakes First Time Property Investors Should Try to Avoid
There is plenty of money to be made by investing in property but it isn’t always as easy as they make it look on TV! Research, preparation and diligent management are all important when it comes to this kind of investment. However, if you are prepared to put in the effort you will find property investment a rewarding experience. Read on to discover five things you should avoid when investing in property.Treating property investment as a hobbyWhilst many property investors do have other careers, treating your property portfolio as a hobby rather than a business is a recipe for disaster. Regardless of whether property investment forms your main career or income you must always treat your property management as a business and apply the same level of meticulous organisation, financial calculation and due diligence as you would any other business matter. You must be compliant with all regulations, keep proper records and manage tenants and rent collection professionally. Many first time investors are too casual with their property management, letting tenants owe rent, not getting completed paperwork etc. Remaining professional and treating your investment as a business is essential to success.Falling in Love with the propertyWhen buying a home for yourself to live in it is easy to think with your heart and not your head. Many of us are attracted to houses because of their character, charm or a certain way they make us feel. Choosing your own home on its feel good factor is one thing, as hopefully you will have years of enjoyment living there, but choosing an investment property in the same way is a big mistake. You need to choose an investment property by thinking through the practicalities of the property; will it attract the right tenants? Is it in a high rental yield area? Will it be easy to maintain? Etc.Scrimping on maintenance When you are starting out in property investment budgets can often be on a shoe string and finances running low after the initial property purchase. This lack of finance can lead to new landlords cutting corners on refurbs when It comes to fixtures and fittings and also letting maintenance jobs slide. Some property investors are tempted to leave maintain the property until the job becomes a non-negotiable. Treating your property like this is a big mistake, if you want to be successful. Neglecting your investment means that the property is getting into a worse state of repair, simple problems become bigger, costlier ones and a lack of care and attention to detail is decreasing the property value. Simple steps like regular painting and garden maintenance can add value to the property and keep it attractive to tenants.Thinking short termTo make money from your property you need to look at your investment with a long term mind-set. You are unlikely to make money overnight or even in the first few years, particularly if you have a mortgage for the property. You need to be in it for the long haul and willing to persevere through the ups and downs of the property market rather than looking for short term gain. Most experts say to build a successful property portfolio you need to have a long term investment plan of 10-15 years.Not Seeking Professional AdviceMost of us wouldn’t perform surgery or take out of teeth without seeking expert medical advice yet many of us are tempted to jump right ahead into property investment without consulting professionals for guidance. Investment success is not a game of chance, there are many things you can learn and practice to help you succeed in property investment. Seeking professional advice allows you to learn from the mistakes and success of experienced investors and draw on their wisdom.For advice, mentoring, training courses and much more then please contact the team here at Nick Fox Property Mentoring, we would love to help you on your journey to success.