It is becoming increasingly more difficult for people to buy their own properties. But for the lucky investors with the spare capital, they can still cash into property which is probably still the best investment of all in terms of return on investment. Here are some tips and advice to help ease you into the world of property.
1. Going to Auction
Auctions are always a good bet for property addicts, there is a very high chance of acquiring an investment property bargain, but very much like a game of poker you need to make sure you do not bid with your emotions or let yourself be carried away with the flow.
2. Location issues
Location is always important, the type of property being prospected needs to be suited to its particular audience, particularly if buying to let or fixing up to sell. Being close to schools, public transport and green areas are always great pluses when it comes to selling. Many of the best property developers specialize in buy in areas considered the worst possible locations, when in fact they are great locations for developing property. The art is being able to spot the areas on the up.
3. Do your Homework
While property could make you a fortune it can also be risky and could land you heavily in financial debt for bad investments. Check your research and your sums to make sure that you are covered financially if anything should happen Property development is very capital intensive and you have to get your sums right. If it was that easy, everyone would be property millionaires.
4. Keep looking
This may sound strange but just driving around the neighborhood that you are interested in investing may highlight some gems. Too many times we take the easy route of picking up the property paper to find prospects. Everyone is doing this so good value properties would be difficult to come by. Do something different!
5. Never pay the asking price
There are always margins in any price tag, through seller commission or owners just being greedy. The way to swing things in your favor is to find someone who needs to sell more than you need to buy. Look out for motivated seller such as people going through divorces or people in financial difficulties, who want a quick and painless sale.
As with all things involving finance, following your head as opposed to your heart is the way to go if you are looking to succeed. It is this trait which separates the millionaires from those hoping to do well.
Alan Ng a guest writer for IPINglobal.