In this blog I have laid out five things to consider before investing in property.
Number one: Do you care enough?
The reason I ask this question is because you need to actually care about your tenants and the property that you’ll be investing in. This isn’t a hands off investment. You have to be involved.
If the answer is no, you don’t care, then property investment isn’t for you. But, if you’re going to look after your tenants and your property and you’re prepared to put in the time, then yes property investment is for you!
Number two: Will you work at it consistently?
There is no get rich quick schemes. Unfortunately, you always have to put in the work. If you are prepared to take consistent action to hit your property investment goals, then great – property investment is for you!
If you want something to come to you super easy, where you click your fingers and it falls into your lap, just know it does not happen in property investment.
So, maybe you want to go pay someone else multi-millions of pounds or thousands of pounds in order to get some sort of pyramid scheme solution. That’s not what property investment is. You have to work at it every single day.
Number three: You need to consider if you have a good credit history.
This is going to impact your borrowing, so it’s worth finding out and there’s a lot of resources where you can do that.
If you haven’t got a great credit history, you’re going to be in for expensive lending. So, you may want to take steps to improve your credit history. This can be done by paying off credit card debts on time, making sure that you’ve got money coming in and out of your credit cards, being really responsible in how you’re borrowing, and paying your mobile phone bill on time helps as well. All of these are really key things that you can do to improve your credit history.
And a strong credit score, as I said, means that you get cheaper interest rates on your borrowing.
Number four: You need to consider what the end goal is.
Will you be leaving your property portfolio in your inheritance? Are you going to be selling it? Knowing that before you start means that when you employ your accountant, you can give them that information. They know exactly how to structure your assets for you so that you are doing it in the most tax efficient way possible.
Spend a couple of hours just brainstorming everything you want to achieve with your property portfolio. That is the best place to start and a consideration you need to make.
Finally, you need to think about what are your strengths and what were you need to outsource.
Who do you need in your team? If you haven’t got the information or know how to invest in property, you’re going to need a mentor or someone to help you and guide you along the way.
If you don’t want to manage the properties yourself, you’ll need a property manager. Of course, you’re going to need a solicitor, you’ll need an accountant, you’ll probably need a mortgage broker as well, unless you want to go and search for mortgage products yourself.
Take all of this into consideration. See what you can do and what you’re going to need somebody else to help you with.
Once you thought all of this through, if you look at it and think, yes, I am definitely in a position where now I know what I want and yes, property investment is going to work for me – Fantastic! Now you can make that leap.
So now I want to ask you: is there anything else that you would add to that list? Or, have these five things to consider before investing in property made you think – Yes, now is the time to start!
Comment below. I want to hear it from you.
P.S. If you are interested in property investment make sure to get on the waiting list for the members club so that we can work together to make your goals a reality!