Getting started in property investment – what should you know?

Getting started in property investment – what should you know?

Investing in property is a great opportunity to accumulate wealth or ensure the financial security of your future through long term residual income. If you currently find yourself in a position that allows you to go on this path, researching the entire subject properly and reaching a few conclusions before actually taking action is recommended. There are a few things you need to focus on, in order to get started in property investment on the right foot. Here are your must-know insights:

Set realistic investment objectives

How much money can you actually afford to invest? Are you interested in fast growing capital, or you want to hold the property long term? These are questions you need to answer from the start, and your future decisions, when buying an investment property, should be based on those answers. All of the goals you set when starting out should be realistic ones. Taking into account important aspects, such as economic times, renovation costs and undoing ownership costs is necessary if you want to make advantageous decisions for your future as an investor.

Property selection

Property selection might not seem like such a complicated task at first. However, a property investment purchase is different from the process of buying a residence, and there are multiple factors that should be analysed, factors you might not be entirely familiar with. Those who are just starting out in this area are usually advised to collaborate with professional advisors who can provide useful pointers. With an expert by your side, you can be certain you are spending money on a property type that actually has potential.

Finance structuring strategy

Finance structuring is another essential step in your general investment strategy. There are various details you might not currently know about, but could influence your status as an investment property owner. Just jumping right in, before creating an adequate finance structuring plan and doing thorough due diligence could lead to disastrous outcomes. Whether you seek support in this department from a specialized company, such as VSMA, or you research everything on your own, take your time, and tailor your finance structuring strategy to your exact needs and possibilities.  

Taxation and insurance

Don’t forget about the taxation and insurance expenses that will arise once you get a hold of a new property. Keeping up with tax requirements will prevent you from dealing with inconveniences, and the right insurance policy will protect you against potential financial losses. Decide on the best approach here, and handle each implication by the book.

Becoming a property investor might seems to be quite promising at the time, considering the financial prospects involved. However, in order to reach success, making advantageous decisions is crucial, and as a novice, you will need to benefit from a bit of support. In order to pursue the right course of action, make the most of these few suggestions. From adopting an appropriate investment strategy with the help of professionals, to maintaining realistic goals, each one of these guidelines should be considered from the start.

Steve Volk