When it comes to property investing, there isn’t a single mistake to be made that someone else hasn’t already experienced. The well trodden path of buying property is littered with foolish errors resulting in unnecessary expense and stress.
Don’t let this be you! Take 5 minutes out to read our guide to the most ridiculous (and avoidable) investment mistakes and then start doing things differently:
The key to ANY successful business endeavour is to have a clear strategy from which to work from. Whether you’re after short term gains or a long term business objective, investing in something as big as property requires a well-thought out plan that details your end goals, aspirations and road-map.
When buying a property that you’ll actually live in, 90% of your purchase-making decisions will be based on your emotions and your ‘gut-feel’. Investing in property is a whole different ball-game where you’ll need to set your emotions to one side and apply logic and reasoning to every decision you make (which is why point. 1 is so important!) Consider your investment and ask yourself whether your hard-earned cash is going to help achieve your end goals or not.
When investing in buy-to-let property, most landlords accept that there may be a period, for whatever reason, that the property will be vacant. Preparing for this event will be essential. You can do this by setting aside a reserve fund to use in this eventuality or by deciding the use the time productively and carry out essential repairs or maintenance, which will be benefiting your investment in the long run.
We all know the old adage of not putting all your eggs into one basket, and it’s true that ploughing your assets into one particular investment type could spell disaster, but there is also a real danger in trying to diversify too much, ending up only just touching the surface of success. There are a couple of occasions when sticking to a successful approach should be encouraged. Many property investors find huge value in keeping all of their investments in one particular geographical area – knowledge is power and knowing an area inside out means you’ll have your finger firmly on the property pulse in that region. We would also advise you to limit the number of investment strategies you take on – stick to a couple of different investment types, learn them inside out; what works (and what doesn’t) and reap the rewards of being an expert in that field.
Finding ‘perfect tenants’ is the golden goal of every landlord, investor and property management company in the world! The perfect tenant pays their rent on time, every time, takes care of the property as if it were their own and moves out without any fuss when the tenancy comes to an end. However, the reality is that whilst the majority of tenants tick most of these boxes, there are some terrible tenants out there. There are a number of ways to avoid these types of people; one of the best being to work with a property management company such as Progressive Lets who will carry out a number of background checks to try to minimise the risks of taking on a bad tenant.
We know it can be bloomin’ difficult to climb those first few rungs of the property ladder, and there’s usually a genuine need to do things as cost effectively as possible in order to make the numbers work. But there’s one aspect you most definitely shouldn’t skimp on, and that’s trying to become a self-managing landlord. Not only do you run the risk of taking on bad tenants who will cause you more than just a bit of a headache (see point. 5) the current laws and legislations for landlords can be complicated and easy for a novice to misinterpret, which could result in huge, unwanted fines. Reputable property management companies, like Progressive Lets, really are worth their weight in gold, and they’re usually not as costly as you would think. Give us a call today and prepare to be pleasantly surprised.