As with everything, and especially where your financial status is concerned, thorough research and planning is essential for success.
If this is going to be the year where you make your first move in the property investment world make sure to consider the points below.
Cash Flow or Capital Gain?
While there are variations of the above those are the two primary methods and due to the potentially wildly different pros and cons of a rentable property and a sellable property it’s important that you choose your path before making a move on any potential projects.
With that in mind it’s completely acceptable to alternate between strategies as you evolve into a more experienced investor.
Property Market Fluctuations
If you’re a first time investor the only assumption you should ever make is that the property market will fluctuate and prices, at some point, will dip. If you begin to work off of that principle you can start to develop your property investing strategies, savings and cash flow with a long-term focus in mind, rather than relying on short-term gains to stay afloat.
Use this long-term focus when considering each new potential property and drown out the noise of the market around you.
What Comes Next?
Successful property investors are like great snooker players, always thinking two or three shots ahead, and it’s important to consider what you’ll do when you’ve used 90% of your investment pot on an investment property deposit, fees and any required repairs or alterations.
What Area To Invest In?
How many times have you heard or seen the above phrase? Even property novices have heard those three famous words repeated over and over again like a mantra and that’s because the sentiment remains the same decade in, decade out.
Before deciding on location you should choose your investing strategy (as mentioned above) as this will begin to dictate what type of property you’re looking for and in what area. For example, a buy-to-let strategy can potentially be much more achievable in an urban or suburban area when compared to a rural market.
When all of the above has been decided you must pick your location carefully and this process begins from top to bottom. You will start on a macro level, deciding what country, county and town or city to invest in and finish on a micro level where you should analyse specific areas, housing estates and streets.
No detail is irrelevant during this phase.
Why Are You Investing?
Before making a move take the time to consider why you’re actually wanting to invest in property. Your motives, and subsequent commitment levels, will quickly dictate your actions.
This is simply a broad overview of 5 major considerations you should be aware of before investing in any property. The property world is a complex and ever-changing environment but can represent a world of opportunity.
If you want hands-on advice from experienced investors here in Northern Ireland check out our upcoming Property Investing for 2017 workshop here!
Also, if you're more interested in entering the property market as a homeowner for the first time take a look at our tips here.
Finally, if you have specific questions or want to network with other investors, to learn and/or team up for potential deals, join us at the next Belfast Property Meet by clicking here or contact us here.