So you have aspirations to be involved in property investment but you’re unsure how to begin?
The first step in your investment journey is making the decision that property is the means by which you plan to invest your money and create options both for the present time and for the future.
Property is the one commodity that remains a reliable and steady source of income and of course will always be in demand.
Here are some thoughts on how to create your own property portfolio –
- Choose in what geographical area you will make your property purchase. This will be affected by the kind of tenants you intend to attract and what they will be looking for in the area they choose to live in. People always want to be near shops, leisure facilities and transport links – a good road system and also public transport options. Families with children will also be looking to be near schools with a good reputation, young professionals will want to live near their place of work, so towns and cities are a good area to invest in rather than being “out in the sticks” in a rural setting.
- Decide what your tenant-base will be. Are you going to focus more on families, which would generally mean a single-let? Or will you aim to recruit many tenants at once, in which case you’ll go for a house of multiple occupancy (HMO). There are pluses and minuses to both types of let. Single-lets are generally less work as you only have one household to deal with but you are left more vulnerable if that one household decides to move out. HMOs mean that you have more tenants to deal with but a more steady stream of income if one tenant moves out or is late on their rental payments.
- Get some advice and industry know-how. One of the best ways to grow in an area is to learn from someone who has already started the journey and is further along than you. This is how you can find out what works and what doesn’t, without having to make the mistakes that others have made. Reading books is a convenient way to reference and search for information as well as being inspired by success that other property investors have seen.
Remember – “Business and making money are not so much about what happens to you, or the rules that are out there but your attitude, perseverance and desire to succeed.” (Dolf de Roos)
This advice will stand you in good stead to getting your property investment business off to a great start.
Nick Fox started his property investment career 10 years ago and his portfolio has grown to one of the largest in the UK. Nick now mainly focusses on HMOs (houses in multiple occupation) and works to help others achieve property success too. Visit here to find out how he can help you.
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