Whatshot
Want to become a property investor Answer these questions first
Want to become a property investor Answer these questions first
Date: 2018-08-03
No-one ever asks "why" when someone says they would like to invest in property. It is generally accepted as a good investment, and that property will always go up in value.
You should answer these questions before diving into property investment:
1. What are you trying to accomplish Don't start by investing for investment's sake or because it seems like a good deal. Property comes with numerous considerations, costs and peaks and troughs that need to be factored in over the longer term in order to be in any way sustainable. Are you investing in a home to live in and sell off to fund your retirement Would you like to rent out the property If so, for how long and how much equity will you need
2. How good of a deal is it really Investment newbies have to be very wary of too-good-to-be-true, once-in-a-lifetime deals. Sure, pure blind luck might be at play, but chances are if there is a bargain out there, it rarely stays on the market long before it's snapped up.
3. How bad of a deal is it really Conversely, there is always a reason to convince yourself to skip a deal. Know that there will always be a downside to any investment - the question is whether or not you can live with it or not. What is the absolute worst thing that could happen to the property
4. Is this the best possible price I can get Investing for the first time can be a daunting prospect and it's easy to be dazzled by jargon, graphs and statistics, but market value is very easy to determine. Assess the value on your own. Listen to your estate agents' or brokers' advice, but do some research and then listen to your gut.
5. How am I going to pay for it Don't leave this question for last. Most people tend to find a deal first, then negotiate, commit and rush off to fund it in a panic, which usually means that you end with fewer options and higher costs.
Answer these questions as early in the process as possible to draw the maximum benefit.
The difference between a smart investor and a gambler is knowledge. Not an "inside tip", but posing the right questions to the right people - which includes yourself. Once you know what you are looking for, you will find spotting the right investment becomes a lot easier (and a lot less risky).

