So, you have heard people tell you to should get started in property investing. The only problem is, you don’t know when is the right time or how to even get started.
This is a common fear for first-time property investors.
Please don’t make the same mistake a lot of newbies do and get deterred by this fear. As soon as you get started, you will see that it is not so hard and very rewarding at the end of the day.
Below, I will help you understand when you should get started in property investing and how to do it.
Why do you want to invest?
First of all, you’ve got to have a reason for your choice to invest.
Either, you were told it is the best way to save for you old-age or you want to become financially free. Whatever the reason, it is an excellent idea.
When I started investing in property, I was looking for a way in which I can earn passive income. I didn’t want to work for money, but rather that money works for me. I’m not saying I’m lazy or anything (on the contrary, I am a firm believer of hard work).
I wanted to work hard for a few years so that after then, my time is not directly linked to my income. I wanted to have more time to enjoy the smaller things in life. Life is not all about work.
What I’m trying to say is, you need something that motivates you to get started in property investing. Without the proper motivation, you will give up and lose out on great opportunities.
Are you financially ready?
We all know that investing in property costs a whole lot of money. You need to know if you are financially ready.
In order to know if you can afford to buy a property, there are a few things you can do.
The first, and probably the most obvious is using online calculators. Depending on where you are situated, your local banks will possibly have these tools available on their websites. This is a quick and easy way to find out if you qualify.
Another way to check is to go to your local bank and ask them what you qualify for. They will normally be able to give you an idea of what you will be able to afford.
It is very important to keep in mind that there can be a few hidden costs as well. Things like conveyancing fees, upgrade costs, bank lawyers, etc. You should always try and overestimate in order to ensure you have enough to seal the deal.
Know what the markets are doing
If you want to get started in property investing, you should try to start and learn the markets. The markets have a lot of influence when it comes to property prices.
I know that this is a difficult thing to do (I struggle with it too), but if you buy in a seller’s market, you will end up paying more than you should’ve.
Reading the markets is not so easy to do. A great place to start is reading the property news in your area. Listen to what to experts think of specific areas. Normally they will say which are the up-and-coming areas and which areas to stay away from.
You will also learn about new property developments which can be great investment opportunities, especially if you’re a first-time buyer.
Another way to get to know the markets is listing to the news and being aware of your country’s politics.
For instance, when your country is being downgraded to junk status it will most probably mean that the people won’t be buying that much property anymore. This will affect the selling prices.
What type of property are you looking for?
You have got to know whether you want to invest in an apartment or a family house. This will have a major influence in the finance of the property.
For first-time investors, I always recommend looking for something smaller, like a flat. Not only is this cheaper, but the chances of you qualifying for a bond is also better.
If you want to learn more about which property to invest in, check out my previous post, Free real estate investing advice: House or flat?
Don’t be afraid – Do it!
If you have done all your homework and you think you’re ready, then do it!
The worst mistake you can make is not taking the plunge. The thing is, you are probably going to make a few mistakes down the line, but that is the only way you are going to learn.
Just make sure that you do all your research regarding the specific property that you’re planning to buy. This way, you are taking calculated risks.
As soon as you start making that first bit of money, you will realize it is an awesome feeling and you won’t be able to wait for your next investment.
To get started in property investing is not difficult. It’s just scary.
I remember when I started out, I was also very afraid of the unknown. I didn’t always know what I was doing but I did my homework and kept learning. It is important to keep reading up on new properties or advice on how to invest.
By keeping up to date with the latest news, you will be able to get your hands on better deals, before anybody else does.
I hope that you were able to find this post helpful. If you have any questions or just like to chat about investing, feel free to leave me a comment.