Deciding to invest in property is a big decision that doesn’t come easy, despite being a stable and low risk investment, it still requires a lot of consideration before committing your time and money to the project. However, once you have decided that property investment is for you, it is only the beginning of important decisions.
This is because the steps you make in the early stages of property investment are ones that will have an impact on the success of your investment. It is essential that these decisions are treated with the importance they deserve, in order to bring your risks to a minimum and to ensure the best potential outcome.
Knowing your target market
The first step is deciding what type of customer you want. By doing this you are putting you and your investment at an advantage, as by choosing a desired customer you can then identify attributes they would like in a property. This then enables you produce a property that people are actively looking for, opposed to a property that is aimlessly driven and consequently doesn’t quite meet the needs of the customer. Additionally, in doing this you can avoid customers you specifically don’t want, such as students, by avoiding the qualities they would prefer. Selecting a target market reduces the risk of not finding buyers or tenants for your property, making it a decision you can’t afford to skip.
The perfect location
Getting the right location is essential for a successful investment; it doesn’t matter if you have the perfect house, if the location is wrong it can put customers off your property. However, now that you have your customer in mind you can start to narrow down your property search to locations that will be desirable to them. This means figuring out what local amenities are going to be desirable, if not essential to them. For instance, a family are going to be looking for local schools and safe roads, whereas students would prefer transport links and proximity to bars or clubs. Providing a great location is only going to make your property more desirable, and therefore is crucial to the process. This isn’t to say that a bad location would gain no interest, but it could mean that you don’t get your ideal customer, or the initial asking price – simply not a risk worth taking.
Make the most of your money
When you invest in property you’re not just investing money, but your investing your life long savings – making the risks even greater. To ensure that you are getting the most out of your life long savings, there are some precautionary checks you should do before spending your money. So when find a property you like that ticks all the boxes, don’t rush into buying it – do your homework first. Meaning that you should do some research into the going price for houses in the surrounding area, this will help you figure out whether you’re getting a fair deal – or being ripped off.
If you’re interested in investing in property but are feeling overwhelmed by all the steps involved get in touch with us. Dealing with this our expertise and whether you want to rent, sell or just ask a few questions we’d love to help you out.