Many people dream of getting into the property market, whether as first-time buyers looking to get that first foot on the property ladder or as ambitious investors on the hunt for a reliable place to put their money.
Unfortunately, there are many barriers to entry into the property world. Unlike when investing in shares or high-interest accounts, you need substantial capital to access this market. You also need to be prepared to have that money locked up over the long term; if you need the cash back from your investment, you will either have to sell (which can take months or even years) or remortgage, which can seriously impact your gains.
Despite that, there are some proven strategies for getting started. Here are our top five steps to getting started in property in 2022.
Understand Your Why
Before you start any new endeavour, the first step you should take is to assess your motivations. In the case of property investing — what are you looking to achieve exactly? Are you looking to build up enough passive income so that you can retire early? Perhaps you would like to create a property portfolio that generates wealth you can pass on to your children. Maybe you want to make a little extra cash while holding on to the property and then sell for a lump sum profit?
Whatever your ultimate goals and property investment strategy, you need to fully understand why you are getting involved to fine-tune your learning and approach to align perfectly with your desired outcomes. For example, if you are looking for passive income, you should focus on locations that provide a good rental return. If you’re targeting lump sum returns, you need to find properties you can buy cheaply, renovate, and flip for good profits. Finally, you will need to find areas and properties that straddle both good rental and turnover opportunities to build wealth.
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Invest in Property Education
Next, it’s time to learn your craft. It is not as simple as finding a house you like the look of and putting in an offer — you need to understand the intricacies of the UK property market inside and out to succeed.
Investing in your education doesn’t necessarily mean signing up for a local college course. Instead, you can find resources matching your preferred learning method, from online videos to books, mentorship, podcasts, and peer-based communities. Absorb as much information as you can. However, you can and will be better at making your move.
Whatever your ultimate goals and property investment strategy, you need to fully understand why you are getting involved to fine-tune your learning and approach to align perfectly with your desired outcomes. For example, if you are looking for passive income, you should focus on locations that provide a good rental return. If you’re targeting lump sum returns, you need to find properties you can buy cheaply, renovate, and flip for good profits. Finally, you will need to find areas and properties that straddle both good rental and turnover opportunities to build wealth.
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Surround Yourself with Active Investors
No one can teach you what you need to know, like the people that came before you. However, engaging with proven or active investors will let you in on the industry secrets — the tips and tricks that help you get an edge and the common pitfalls you need to avoid.
Seek out opportunities (both online and off) to network with the investors where you want to be, then take advantage of the wisdom and knowledge they share.
Work on Personal Development
Personal development differs from educating yourself, although the two areas are closely linked. When you work on personal development, you aim to improve the softer skills crucial to successful property investing. That can include learning to be patient, accepting elements of the property environment that you cannot change, and being adaptable to dynamic situations.
Ultimately, when you work on yourself, you become a better person and in turn, a better investor. Use this time to increase your knowledge, develop new skills, and improve your mindset; you will reap the rewards in the longer term.
You can work on these areas by using the resources available: books, podcasts, and online courses.
Take Action
The worst action you can take is no action. Every day you sit and dream about your property journey, and every time you put it off until the market picks up, you’re missing out on opportunities — and the bolder and hungrier investors are snapping them up.
Yes, take some time at the outset to educate yourself and develop your investment strategy — don’t take too long. But then, get out there, find investment opportunities, make offers, and do your due diligence. You will rarely go wrong if you are prepared to undertake the work and stick to your financial limits for each property.
Finally…
If you need additional advice or support or have questions about property investment, then get in touch with Citadel Properties. We have been where you are and are keen to share our experience with like-minded property enthusiasts.
You can find us here.
