If you ask anyone what they believe to be the safest investment opportunity, I’m sure that they will say it is property. That’s because the property prices have been growing and increasing over the past twenty or so years without any sign of slowing down. It looks like there is little chance of your investment failing if you decide to put your cash in property.
But is it really as good as it seems? It’s true that the property market is a lot easier to navigate than many other investment opportunities, even stocks and shares, but it might not be as easy as many people would have you believe. In fact, there are a few pitfalls that you could land in if you don’t play your cards right. There are a few ways around them, though.
Here are some of the most common property investment mistakes. Make sure you read on to find out what you can do about them and how to close the door on them before they ruin your investment!
Going With Your Heart Over Your Head
When it comes to choosing a property, it can be all too easy to listen to your emotions and let them rule your decision. This might be perfectly fine if you were just buying a property to live in as your own home. However, in this blog we are talking about property as an investment. And that means that you should be a bit more practical when it comes to making all of your decisions. Ideally, you need to listen carefully to your head as it will have all the best advice and will help you plan your next steps. It’s perfectly fine to listen to your emotions and intuition at some points of the process – especially if you have a bad feeling about anything – but at the end of the day, it needs to be your head that has the final say.
Failing To Get A Survey
It might be one of the more boring bits of the whole property purchase process, but it really does need to be done – I’m talking about getting a survey. You will need to find a lawyer who specializes in these. They will then visit the property and take a look around to ensure that there are no issues with it, from a structural point of view. They will even be able to tell you if there are any problems that might arise because of the materials used in it or its location. All of these things will definitely save you money in the long run. After all, you don’t want to buy a property only to have to carry out a lot of structural work on it after you’ve only had it for a year!
Choosing The Wrong Finance Structure
When it comes to buying a property, there are a lot of different types of financing you could get to fund your purchase. When you carry out a loan search, you will find that you end up faced with various possibilities, from mortgages to bridging loans. And they are just two out of a whole range of different property finance! So, which one should you go for? That’s the big question on every property investor’s lips! Well, the answer is largely up to you. It will depend highly on the type of property that you are going to go for, as well as your own financial situation. Not only that, though, but you might have to take into consideration what you intend to do with the property, as some loans might need repaying straight away. Whatever happens to your investment could affect your ability to repay.
Making Mistakes As A Landlord
If you decide to rent out your new property and become a landlord. you need to make sure that you know what you are doing. If you go into life as a landlord blindfolded, then there could be some legal traps that you fall into. After all, you will need to understand your tenant’s rights and how you need to look after the property for them. You can’t simply hand over the key and leave them to it – you will need to be ready to act if anything happens to the house while they are in it. Not following through with your official landlord duties and responsibilities correctly could end up being very costly for you!
Hopefully, this has clarified some of the main property investment mistakes and how you can try to sidestep them!