Where to begin and what type of investor are you?
Knowing where to begin with investment property may seem overwhelming. Many people suffer from analysis paralysis because quite simply they don’t want to get it wrong. Everybody is different and what has worked for some may not work for you.
Firstly you need to decide what your goals are, what your current situation is and map your process out from there. Everything starts with a plan. Goals are important.
The main pinch points to deal with are:
Where to find the right property.
Finding the right property that ticks all of your boxes can be a time consuming task, particularly if you lead a busy life and time is limited. Whole evenings and weekends can be lost trawling through the likes of Rightmove and Zoopla only to still come out empty handed.
Other options to consider are:
- Auction property
- Buying investment property before the auction
- Buying investment property after the action
- Source property via traditional estate agency routes
- Use a property sourcing agent. (Martin & Co Canterbury are a great option 😊)
What type of property investor are you?
Here are the top four types of property investor you frequently come across.
Freedom Frank – If you’re wanting to buy investment property to replace your monthly salary with the goal of quitting your full time job, then you’re a Freedom Frank.
Frank is the type of investor that’s ready to go – but the investment needs to be right. He’s driven by income and wants to invest wisely to maximise income and generate enough funds to quit the day job – or at least give him something to fall back on.
Hands-on Helen – Do you like being hands-on with every single aspect of the property investment process? If you do, this is you!
Helen loves every single aspect of the investment journey and wants to be involved in every decision, all the way down to which shade of grey should go on the walls. She has more time on her hands to get involved with the investment process and day to day management. But, if the process isn’t managed carefully, the entire process could run away with her and the whole project could end up way behind schedule and way over budget.
The trick here is to know your strengths. You might like getting involved with the nitty gritty, but are you really good at it?
Long-term Lee – A generous pension, security for your family, and something to pass on – is that ticking your boxes? You may be a Long-term Lee. The bonus with being a long-term Lee is you already have the most important asset when it comes to property: time.
Investors like Lee want to make money from property but they are in it for the long haul. A ‘get rich quick’ strategy isn’t what you have in mind, and you’d rather take your time and find investment properties that are truly right for you. High returns aren’t a big thing on your agenda either, you’re more focused on capital growth and future potential of your investment property.
Income Issy – She is not necessarily looking for a ‘quit your day job in a week’ strategy, but she does want to start making money from property as soon as possible.
When income is your primary driver, it’s easy to get sucked in by false promises. Many property investors have been sold pipedreams from companies promising earnings of thousands of pounds each month.
Making money from property quickly doesn’t have to cost you a ridiculous amount of money but you will need to do your research
Telling you to take action might seem extreme, but we’re not telling you to go out and buy any old property right this minute.
Believe it or not, there is a lot you can be doing before even looking for a property and there’s no time like the present.
Setting your goals and laying down your strategy are 100% the two most important things you need to do before anything else.
Martin & Co Canterbury can help you source properties, find the right buy-to-let mortgages the rates are low at the moment) calculate yields and lead you through the process to get your property ready for rental.