The Property Game: How To Increase Your Chances Of Winning
Investing in property can be very lucrative, but there are risks involved. While there are moguls who make a lot of money from buying and selling homes, not every story has a happy ending. If you’re keen to try your luck at the property game, this guide should prove useful.
Figure out your finances
Before you browse brochures, take time to get your finances in order. Take a good look at your accounts and figure out how much you can afford to spend. This will enable you to set a budget. Budgeting is a fundamental part of successful property investment. If you go over budget, this could have a negative impact on your financial status. You also run the risk of eliminating the chance of generating profits. Once you’ve got a figure in mind, you can start the property search.
Consider your options
There is no single way of making money from property investment. You can pursue multiple avenues, and it pays to consider the options carefully. Many investors choose to buy properties and then sell them on for a profit, but there are alternatives. You could look into joining crowdfunding movements and take a look at a review of Fundrise or you could buy a property to let. Crowdfunding has become an increasingly popular way to invest, and it may represent an attractive option for those starting out. Buying to let is an excellent choice for investors who plan to play a long game. Rental payments can help to cover the cost of the mortgage or go into a pot to fund more properties for the portfolio. Before you make a decision, mull over the pros and cons and work out what’s best for you.
Find the right properties
Winning the property game boils down to making the right calls at the best time. The logical place to start is finding the right property. Tailor your search to what you’re looking for. If you’re buying to let, your search may be completely different to a hunt for a forever home. If you do plan to rent out the house or apartment, bear the target market in mind. Which kind of tenant do you want to attract? Are you looking to break into the family market, do you want to appeal to young professionals or are you targeting the luxury market? Find a home that suits the desired tenant and don’t let your personal taste interfere with business decisions.
Think about what that tenant would want. If you’re looking for families, for example, proximity to good schools and public transport links will always work in your favor. If you’re buying to sell, apply the same rules. Who are you hoping to sell to and what would that buyer have on their wish list? Don’t rush into making offers. Take your time to look around, check out the location and research the market. How much are properties selling for and how buoyant is the market? Contact local agents, set up some meetings and find out as much information as possible about properties that catch your eye.
Pay the right price
Making money from property is not a given. Although there are many success stories, there are plenty of tales that don’t end so well. The aim of any investment is to generate profits, and this should be your goal during the property search and the negotiation stage. A house is only worth what you’re willing to pay, so don’t pay over the odds or go over budget. If you pay too much, this will affect the profit margin. Prepare to haggle over the price. Unless there are multiple parties taking an interest, bide your time. Start low, as you can always increase your offer. If you can pay cash, this will make you a more attractive prospect. You may also be in a better position if there’s no sales chain and you can move quickly.
Are you keen to have a go at playing the property game? If you like the sound of making money from buying and selling or buying to let, why not give it a go? Do your homework, set realistic budgets and get an insight into the market value from local agents. Always make sure you know everything there is to know about the property and the location before you show your cards. Negotiate on prices and conduct a thorough search. Always bear the tenant or buyer in mind if you are looking to sell or let out the property.