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Investing in Property? Top Tips for Being a Successful Investor

Some people invest in property without thinking about how it will impact their lives, whereas others will do the research first and succeed quicker. There isn’t anything wrong with investing without previous experience, but you need to ensure you’re taking all the right steps to be the best there is. Owning a property is surprisingly different to being a landlord and investing in buy to let property. While starting a new investment journey is exciting, it can quickly go wrong without the right advice. Below is a list of top tips for being a successful investor in today’s property market.

Get financially literate

Despite potentially knowing the market you’re investing in; you won’t know everything. This is why it’s essential you start reading up on financial information and news as your new hobby. Understanding different phrases and words related to your industry will ensure you’re always on track with your investment. Additionally, reading will naturally broaden your vocabulary and knowledge, anyway!

Know the market

Take an investment course or speak to property investment experts like RW Invest, doing so will give you more information on the market available in the area you wish to invest. There are aspects of the property you may not truly understand until speaking to an advisor, which is why it’s preferred. They can also give you more details on potential properties you wish to hear about.

Develop long-term goals and a plan

Studies have previously shown that those who set goals outperform those who don’t. This involves doing research, making the commitment, and then following this through. Approaching property investment with an open mind is essential, but knowing your long-term goals is the key to success here. While investing in a buy to let property can provide a further income, you may want to plan out going on to sell the property in the future.

Live below your means

The key to growing significant net worth is to live well below your means and keep investing when you have the money too. No matter what your income is, it’s possible to spend smaller amounts of money. This will mean your income versus expenditure has a larger margin. Plus, if you’re able to save any extra cash, you could go on to invest in more property.

Focus on net gains, not gross

People often forget about the hidden costs of property investment, but there are lots of variables involved. It’s not how much you’re making on a property, to be successful, it’s about how much you keep. If there are endless repairs on a property, but the rental yield is 8%, you’re not going to earn this percentage as long as you’re spending more money on the maintenance. Perhaps this is why you should explore all of your options before investing in a property. Newer developments and refurbishments are ideal properties for buy to let investors as they often require little maintenance during the first few years. However, older properties can also have minimal repairs needed, and it’s sometimes down to the quality of the build.