In our ever-changing economy, it can be hard to pull off property investment whilst still making profit. Those of us successful in the property market have to stay level-headed and look after our money, or we will lose out. We don’t want that for you in 2019. Nick Fox know that we all need a bit of financial advice once in a while, and when it comes to property investment, we’re happy to help out.
Here are our top tips to help keep your losses to a minimum.
Investing in anything is a gamble – especially when on your own and starting out on the road to a profitable property portfolio. So, if you’re a start-up, you want to seek help. Working alongside knowledgeable others helps minimize the risk of investments falling through and you losing money. Consider having a greater, in-depth chat with us or check out our selection of investment strategy guides for further support. Remember it’s often best to start small and work your way up.
Carry Backup Money
When putting money into domestic housing, always ensure that your income is substantial enough to support the property through times of no tenancy. Setbacks happen in all aspects of business, so be prepared for unexpected costs and a lack of income that comes with tenants moving on. You won’t then get that shock if it happens.
A good way to stay secure in these times is to keep money aside for if occasions. ‘If my tenant moves out, will I have the money to cover the losses?’ ‘If my boiler breaks, will I have enough money to cover the costs?’ Having a reasonable sum tucked away for such occasions will give you peace of mind and a much-improved chance of seeing your investment through.
Consider what’s Lucrative
As opposed to domestic investments, holiday periods can give great opportunities in themselves. Whilst tenancies offer steady second incomes, domestic property investments aren’t always the most profitable way to go about things. We’re talking about holiday homes. People love them and will pay substantially for them.
Over the next few months, it could be beneficial to look for locations (locally and abroad) that will attract tourists in the coming years. Having a house or flat that can provide holiday housing in peak periods can be highly beneficial. Trust us, it may not be steady, but it sure is lucrative when the season rolls around. Growth areas are always great for investments, so follow where the tourists are flocking.
Assess on Merit
Remember, if the property you buy is in itself not to standard, people won’t want to pay highly for it. When you next go searching for an investment, make sure to assess the strengths and weaknesses of each property. If your personal assessment is on the positive side, it’s good for the go-ahead!
You need to consider, at the very least: location, appearance, expected appeal and an estimate of return in this. Remember, your income and added capital gain should always cover borrowing costs, otherwise the investment is not financially stable. If you assess a property and only see it as a debt threat, it’s time to look elsewhere.
Hope these tips help with your 2019 property investment endeavours and hope it goes well!
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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