If you’re new to the world of property investments, it can be daunting thinking about owning one apartment, let alone two or even more. But some of the most successful property investors do just that – they create a strategy and put mechanisms in place that allow them to methodically add more and more investment properties. With a little planning, some know how and some assistance from professionals, you’ll find it is easier than you might think!
Developing An Investment Strategy
Planning is a critical factor when you’re looking at property investments, and particularly when you are starting with the idea of building a portfolio. Creating a long term strategic plan that covers the next 10 to 15 years, is the best way to map out a path for future success. Creating specific milestones for yourself during that period – for example, buying your second property – and setting goals can be a great way to keep you on track.
The idea of equity in property is essentially using the value of your existing property minus any outstanding debts you may owe (generally the largest amount will be the mortgage). Obviously the sooner you can pay as much of the investment loan as possible the better, and properties that increase in value will also provide you with access to a larger amount of equity. Many banks and other lenders will give you access to this equity via products such as equity accounts.
Choose The Right Type Of Property
Keeping on the idea of equity, it is important to choose a property that will increase in value over time so you can get the maximum return for your investment. However, choosing the right type of property investment – for example, off the plan or brand new apartments over existing properties – can also mean choosing a stress and hassle free experience as you build your property portfolio. Older properties can often come with pre-existing issues such as cracking, mould and damp, insect infestations, which can be costly and time consuming to fix.
Getting Assistance From Professionals
Finally, one tip that successful property investors agree on is to not try and go it alone: getting assistance from professionals such as accountants or financial planners, as well as property investment companies such as Ironfish can help to give you a head start when you’re interested in property investing. Getting help with creating a sustainable long term strategy, with achievable goals and milestones, can help you stay on track to building your portfolio, even in the face of the inevitable ups and downs in the property market. A professional property investment company can also help get you access to pre public and pre negotiated deals for brand new and off the plan properties.