Property investment is a potentially lucrative avenue for making money, but getting started can be a challenge. There are plenty of pitfalls to watch out for which could catch rookies out.
In order to help newcomers get a foothold in the world of property investment, Matt Harper-Penman from Fabrik Invest has given his top tips.
“Investing in property for the first time can be quite daunting. There’s a lot of information to absorb, so it can be hard to know where to start,” Harper-Penman said.
“However, when you break the task down into a series of steps and surround yourself with the right support, investing in property can become immensely fulfilling, as well as financially rewarding.”
Define your strategy
Harper-Penman said: “There are various kinds of property investments, so the first step is to research them and decide which kind of investment suits you best.
“Commit time to understanding the local market and trends, so that you can ensure you’re buying in an area with growing demand.
“And as part of that due diligence, ensure that you identify more than one way to exit the investment, should you decide to do so.
“There are so many free educational resources available on the internet that can help you with this part of the investment journey,” he explained.
“I would encourage any potential investor to spend time educating themselves in this way – it’s the only way to make truly informed decisions about where you should be investing.
“Particular things to look out for, in addition to property market performance, are local growth plans.
“Look for plans for regeneration projects and economic stimulus, from new neighbourhoods and business zones to transport infrastructure projects.”
He added: “These things create jobs, which encourages population growth and results in capital growth.”
Find the right team
“Towards the end of my first year as a property investor, I nearly walked away from property altogether,” Harper-Penman confessed.
“Property investment isn’t always easy or straightforward, so be sure to surround yourself with the right people – people who can support you with knowledge and experience and people who can help keep you motivated and focused on your goals.
“When things are going well, you may not need them that much, but when you hit a bump in the road, having experienced property investors on hand to provide everything from advice to moral support can be quite the game-changer.
“Having the right connections in terms of solicitors, mortgage brokers and accountants is also really important,” he explained.
“It takes time to put all of this in place, but it’s well worth it.
“That time is an important part of learning to become a property investor and avoiding any pitfalls along the way.
“It can also make the whole investment process seem far less daunting,” he added.