by Lina Martinez
For many people, investing in property is a very safe bet. That’s because the property market has been very stable for the last couple of decades, and there has been little volatility with the average market prices. In fact, house prices have been steadily growing year upon year and very few houses have actually lost any money or value. So, the majority of investor agree that if you want a safe investment which is pretty much guaranteed to see you increase your money, then property is the way to go.
This may sound like the dream, but it can also be quite a daunting prospect for first-time investors. That’s because they see buying property as being a very big purchase indeed, and something that they might be stuck with for a fair few years. Is it really worth it? Well, if you follow these necessary beginner steps, then you should see that being a first-time property investor can be extremely lucrative.
Consider The Location
First of all, you need to think about your preferred location for buying a property. You will probably want to buy in an area or region that is quite low priced at the minute. After all, as a first-time property buyer, there is a good chance that you won’t have a lot of money to splurge on this large purpose. And, as it is unwise to get a very sizable mortgage, it’s always best to buy within your means. So, it’s probably a good idea to narrow your search to the areas that feature the low price tags. But that’s not the only thing you need to consider - you should also think about the potential resale value. Do you think you will face a challenge when you want to sell the property? If so, then you might want to look elsewhere. That’s because you don’t want to risk ending up in a position where you need to lower your asking price, as that could result i you losing some money.
Source Some Financing
Once you have found the perfect house, you need to think about your finance options. I’ve already mentioned getting a mortgage briefly, and that is probably your safest option for funding the sale. However, some people, especially those of you who are self-employed or have a poor credit history, might have a hard time finding a mortgage from a reliable lender. There are some other companies, though, such as Magilla Loans, who might be able to offer financing to those who struggle to source a mortgage. It’s usually a good idea to find a financial advisor and ask their advice if it looks like you will need to find a substantial sum of cash.
Work On Your Investment Plan
Next, you need to consider how you are going to make money off this investment. You have two main options - you can simply hold on to the property and sell it at a later date, in the hope that it will have significantly increased in value. You might even want to live in it yourself during this time. The alternative option is to rent it out. This guarantees you a regular monthly income, and you will still have the option of selling the property at a later date. However, you will then be a landlord and will have to deal with the tenants who you rent the home out to. Some property investors can’t be bothered with all the duties that come with being a landlord so they simply do up the property and sell it for a higher price to what they bought it for.
Start To Network
Once you do become a property investor, it is always a good idea to start networking within the sector. It’s good to get to know a few other investors with similar interests as some properties get sold before they even make it onto the public market. So, once you are in the inner investment circle, you will get to know plenty of great investment opportunities, simply by chatting to the people who you know!
1321 Lochbrae Rd, Sacramento, CA 95815— The Murphy Team (@TheMurphyTeamRE) May 3, 2018
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Create An Exit Strategy
As with any good investment, it is always important that you have a solid exit strategy in place. For instance, you need to know how you can get out quickly if things start to look like they are going wrong. But it is also a good idea to come up with an exit strategy for once you have made a lot of money. After all, making the wrong move could end up being quite costly!
Good luck with your first property purchase!