Choosing the Right Property Investment Strategy for you

Investing in property isn’t a difficult process providing you choose a strategy that suits your personal circumstances. Strategies used by other investors may not be right for you so you need to look at and consider the following 4 important aspects before even contemplating investing in property.  

 1. Time

Is investing in property going to be your main source of income? If not how much spare time will you have to work on your investments? Do you have enough time available to renovate run-down properties or are you going to need to buy properties that are virtually ready to rent?

Time is precious to everyone so you need to make sure the time required by your strategy is similar to the time you have available. Don’t buy a property that needs a full refurbishment if you don’t have the time to do it, and similarly don’t pay top money for a perfect rental property if you have plenty of time spare for renovations.

2. Knowledge

How much do you actually know about investing in property? Do you understand exactly what a full refurbishment consists of and how much it will cost? Do you understand the financial side of property investing and the various methods you can use to raise capital to buy properties?

The strategy you use to invest in property will depend to a large extent on your knowledge of the subject and the processes involved. Don’t opt for complex investments such as lease options and off-plan developments unless you know exactly what you’re doing. You should also be wary of big refurbishment projects unless you fully understand the work involved in such projects.

3. Experience

Have you ever bought investment properties before? Have you worked in the property market, or maybe as a financial advisor/mortgage broker?

Understandably the strategy you use for investing in property now will also depend on any experience you’ve had in the past. If you’ve owned property before then you’ll probably know a bit more about the market and the financing options than if this is your first attempt at investing. Use any experience you have, whether positive or negative, to help you devise your strategy this time round.

4. Finances

Your financial situation will determine your property investment strategy more than any other aspect so it makes sense to start here. If you intend to use buy to let mortgages for investing in property you’ll have a limited amount of money to play with, and this will govern to an extent where you can look for property investment opportunities i.e. auction houses, repossession websites etc.    

If you’re using cash you can also consider off-plan property developments, making BMV offers through estate agents and even lease options.

The key to successful property investment is finding a strategy that fits your requirements; not trying to change your circumstances to fit a pre-designed strategy. If you’re at all undecided about what type of investment to go for or how to go about the process of investing in property it may be beneficial to hire the services of a property investment company. You might well pay a fee for their advice but it could be the difference between making it big in the property market and falling at the first hurdle.