- 26 July 2021
- Posted by: admin_gray
- Category: Property
BEGINNER’S GUIDE ON GETTING STARTED AS A PROPERTY INVESTOR
(GET THE MOST OUT OF YOUR INVESTMENT)
Written by Chantelle
So, you’re thinking about becoming a property investor, you’ve bookmarked ‘fixer upper’ homes, deep-dived the web in search of properties with lucrative returns, and you are on your way to learning the secrets of investing.
You may be focused on how you can create financial wealth, picturing more for yourself than simply purchasing a home for personal use. But how do you realistically, get started; and what can you expect on your journey?
At Savvy Women group we believe empowerment comes right after exiting your comfort zone. The pursuit of knowledge in the hopes of creating a better life greatly increases your self-worth and drive, and it’s why we have created a fool proof guide for you to follow.
We will discuss why it’s a good idea to invest in property, and then begin, walking you through the vital steps to take before closing on a purchase of a new home.
Investing can be tricky at the best of times, but property investments have been around for centuries, with the right guidance, property investing can turn into a sure-fire way of securing your (financial) future. Enter your details below to get the free guide
UNDERSTANDING YOUR GOALS AS A PROPERTY INVESTOR
Before we get started it’s important for you to understand what property investment is right for you.
TO ACCESS AN ALL INTENSIVE ONE- ONE PROPERTY COACH MENTORSHIP, VISIT OUR COACHING SERVICES WHERE WE’LL BE MORE THAN HAPPY TO HELP.
Consider if becoming a landlord is in your best interest. If you prefer a short term, reasonably quick return on investing, house flipping/refurbing could be a suitable option. This allows you to purchase a home, fix it up and sell it on for profit.
For a long-term investment, becoming a landlord will allow you to make payments towards the mortgage (through your tenants’) whilst the property appreciates in value.
You can expect a 7% and above yield on these types of investment. if you pick a good location, keep your property in good shape, and do your best to provide tenants with a comfortable place to live.
A rental yield is the amount of rent you can expect to receive from your property in a normal year. The figure is always presented as a percentage, which is calculated by dividing your annual rental income with your initial investment.
*Did you know: Student towns have amongst the highest rental yields but beware of other costs such as maintenance/ advertising*.
TOP STEPS BEFORE INVESTING IN A RENTAL
CHOOSING THE RIGHT LOCATION
-Location plays a massive role in the returns you can gain from your property. A good rule of thumb is to choose the cheapest house in the nicest area you can afford. The market value in the area will increase over time.
-Finding tenants and collecting rent will be easier if your property is in a safe area where tenants will have access to jobs and be able to send their children to good schools.
2. HAVE AN EXPERT INSPECT THE PROPERTY.
-Making sure to recruit a house surveyor is non-negotiable.
-They will let you know if there are any signs of structural damage, mould, or pest infestation, which will ultimately result in additional expenses for you.
3. USE A PRICING INDEX SERVICE
A house price index tracks house prices trends across UK cities. These sites can help you identify residential property risks based on your search area. Using sites like Hometrack you will be able to get updated information click on this link to get the latest UK Home price Index on property prices.
4. Have a deposit to cover 20 to 25% of the asking price. You might also have to cover associated purchase cost for instance solicitors, Finance brokers, conveyancing and renovation costs if the property needs some work.
–To work out based on your earnings how much you can save for a deposit, seek advice from a mortgage advisor, finance specialist, property expert.
It doesn’t stop there! As well as providing coaching, mentoring and certified courses we have also included access to download our free guide where we continue to give you gems on how to protect your investments, pros and cons of the rental investment business and what to expect when managing your rental. See you there!
WANT TO START A SUCCESSFUL PROPERTY INVESTMENT BUSINESS IN 90 DAYS? Click here to find out more.
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