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If you’re a fan of TV makeover shows or you have a penchant for property magazines, you may be toying with the idea of trying to become the next real estate mogul. TV programs can make the process of turning over profits look very simple, but there are dangers and hazards out there. There’s always a risk of a punt not paying off, but hopefully, this guide will help you steer clear of pitfalls and become the real deal.
Working out how to finance your investment
When you’re thinking of buying an apartment or a house, you’ll need to consider how you’re going to finance the acquisition. Have you got sufficient savings to buy the property outright? Are you going to take out a mortgage? Or are you thinking about checking out a crowdfunding website like Fundrise?
Sit down, check your accounts and set up a meeting with a financial adviser to determine which options work best for you. If you are applying for a mortgage, it’s worth shopping around and taking a look at different mortgage offers. When you’ve made a decision, you should have a clear idea of how much you’re going to spend or invest.
Choosing a location
Location is everything when it comes to making money in the property business. For most buyers and tenants, location is a priority, and this means that it should it top of your list too. Look for areas where there is a demand for properties, check out up and coming suburbs or parts of the city and look out for glimpses of regeneration and development. Think about the kind of buyer or tenant you want to attract. If you’re in the city and you’re looking for young professionals, buying close to a subway or train station or a bus stop makes sense.
If you’re targeting the family market, choose properties close to good schools, daycare centers, shops and public transport hubs. Once you’ve selected a town or county, get in touch with local agents and delve deeper. Find out more about house prices and the kind of people who live in the area. Use the Internet to search for apartments and houses and stay in touch with agents so that you have access to new homes before anyone else.
Negotiating a good deal
To be a successful investor, you have to make money. If you’re buying property, you need to ensure that you pay the right price. If you pay too much, the chances of making money when you sell will be slim. Negotiate on the price and play to your strengths. If you’re a cash buyer or you can start the cogs turning straight away and get the sale completed quickly, this could work in your favor. Be prepared to play the waiting game if there are no other offers on the table.
Are you interested in investing in real estate? Whether you plan to sell or buy to let or you’re keen to get involved in joint investments, there is a lot of money to be made from bricks and mortar. Good luck!