Investing in property has always had huge appeal. When you buy a house, you have something that you can physically use, not just a piece of paper – but something real. Plus, once you buy enough properties, you can create a healthy income for yourself by renting them out.
This is my plan over the next couple of years and ideally I’d like to get my first buy to let in 2022 – I’m so excited about this prospect but it is going to get me to the status of financial freedom that I’m after. Not necessarily for early retirement as I love working and helping people but to give me the freedom of choice about how I spend my time.
Getting to that stage, however, can be a challenge. Just buying a single residential unit and hoping that it will provide sufficient income just won’t cut it. After taxes and fees, most investors are only making around 5 percent – which isn’t great.
The trick here is to get smart with your investments. In this post, we take a look at how even the average investor or family can become a property mogul. It’s hard, but it’s not as difficult as you might think.
Find Out Where Everyone Is Looking And Then Go The Other Way
Just like other markets, property goes through cycles and trends. One minute, a certain aspect of it is popular, and then the next another.
The trick here is to avoid getting swept along with the crowd. If everyone is becoming obsessed with homes of multiple occupancy, you should look the other way. Or if people start getting interested in land, you should consider commercial lets.
The reason for this is simple: if people are interested in a particular property asset, it pushes the price up. And when this happens, it lowers expected returns.
When considering investing in a property, try to look beyond the building itself to the wider context. Take a look at the local economy and ask yourself whether it is going in the right direction or not. Investigate the unemployment rate, local taxes and what’s happened to house prices over the last ten years. See what new projects are planned in the area and whether these might give you a return on your investment.
If you’re looking for information, Search Party Property is a good place to start. Sites like these provide in-depth insights into the market and support investors in their decision-making.
Be More Discerning
Don’t just go for the first property you find. Instead, be as picky as you can, taking as many variables into account as possible.
Property moguls always visit the properties that they want to buy in person. This simple action allows them to get up close and personal with the building to figure out whether they should bother investing in it or not. Some properties can appear cheap but are hiding problems, while others seem expensive, yet still offer tremendous value.
Ignore The Hype
The property market is rife with hype. When things are going well, investors can believe the most outlandish things.
The trick here is to ignore as much of this chitter-chatter. Find your system and focus on the fundamentals. Don’t allow anyone to make decisions for you, based on what’s popular. You have to become an independent thinker, unswayed by the opinions of others.
So, there you have it: some of the things you’ll need to do if you want to become a property mogul. I’d love to know if you’re on the same journey as me to financial freedom through property investment!