You may/may not have ever invested in property before, but I’d make a fair assumption that if you’re reading this blog, you’re certainly interested in it.
Very wise I’d say.
With savings interest rates at historic lows, property investment, even in a slowing market, can far exceed capital returns on savings and what’s more, it’s actually enjoyable and therapeutic with the skills you acquire on a property journey.
Let me explain..
I’m ostensibly a Sourced property expert for Bolton, but I do keep a keen eye on other surrounding areas. Greater Manchester (or Lancashire in old money) has its own property idiosyncrasies and just in Bolton, there are huge gulfs in property prices in different suburbs and varying annual growth.
How it all started
I started out my property investment portfolio in single Buy to Let homes in Bolton and Salford. You can invest remotely though, and I have a number of connections from London and overseas who have chosen properties based on capital growth and rental yield in areas they are not based in.
What we did back then (we, meaning me and my brother) was buy three investment properties. We refurbished one at a time, held two, then we would sell one on.
It was a bit like a card game, but without the risks.
The first lesson I learned was to buy ‘ugly ducklings’ and not be lured by ‘swans’. Don’t judge a book by its cover, or in other words, don’t dismiss a property you see online because it’s not aesthetically pleasing enough.
You’re buying to invest so use your head not your heart.
I dismissed an ugly duckling property outright at the early stages with an online search, but decided to view it anyway, and I still have that property today – it’s been a very successful investment.
You should view properties physically too before deciding where to place your cash.
Another trap that many investors fall into is being too hands-on with a project. At the start, it’s inevitable that you’ll roll up your sleeves to save money by grafting on projects. But as your portfolio grows, it’s not the best use of your time to be the carpenter, the builder, and the plumber.
Outsource the relevant work to professional experts and focus your time and energy on growing your property investment business.
Don’t get me wrong – at the outset, I loved renovating the dilapidated properties with my brother. I even completed trade courses, and without this period of property learning, I wouldn’t now fully understand what craftsmen and women do. I mentioned it being therapeutic earlier and it was – these skills are now handy at home and I also realise how important it is to have a good network of contractors and builders to call upon.
You may have some doubts at first. That’s perfectly normal, but my early success provided an impetus to move forward and grow the business. If I had a time machine handy, would I go back in time and make different decisions?
You will need to adapt, just as we did, but with motivation and a good insight into the property market, you will be successful.
Want to know more? Contact me at firstname.lastname@example.org