The property market has been known to be a classic and proven product that gives a good return on your investment. Most property owners would have doubled, tripled the original price of their property depending on how far back in time you compare the prices to.
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| small apartment investment |
So, how do we get started in property investment? Here are steps that you should go through before you make your first purchase.
1. STUDY It is always prudent to do your homework before you embark on any investment. Study the location , property prices etc...
2. DEVELOP A STRATEGY Real estate investing is very broad and you have to choose the strategy that not only suits your financial capacity but also your risk appetite. Will the property be a buy to let investment? Will it be a buy low and sell high investment? Buy to renovate and sell at a better price later? There are a big range of strategies to consider and they all have to be accounted for wisely.
3. SIMULATE A PURCHASE Before you buy your property, begin with the end goal in mind. Go through the exercise of looking ahead as if you have already purchased the property. What property will you purchase? How are you going to meet the financial obligations? What are the next steps to create profit? Who is your target market that will lease your property? How will you market your fixer upper to reach your buyers? Once you can confidently answer these questions, you can now proceed to the last step.
2. DEVELOP A STRATEGY Real estate investing is very broad and you have to choose the strategy that not only suits your financial capacity but also your risk appetite. Will the property be a buy to let investment? Will it be a buy low and sell high investment? Buy to renovate and sell at a better price later? There are a big range of strategies to consider and they all have to be accounted for wisely.
3. SIMULATE A PURCHASE Before you buy your property, begin with the end goal in mind. Go through the exercise of looking ahead as if you have already purchased the property. What property will you purchase? How are you going to meet the financial obligations? What are the next steps to create profit? Who is your target market that will lease your property? How will you market your fixer upper to reach your buyers? Once you can confidently answer these questions, you can now proceed to the last step.
4. CHECK YOUR FINANCES Before you jump in to buy any property, make sure your basic necessities are met. You should have a healthy cash flow to cover your living expenses; with a minimum of 6 months emergency fund. Once you have covered these basic expenses and still have excess cash for investment. You can now advance to buy your first property.
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