Mini e-course Part 1 – Having a clear property investment strategy!

You really need to understand the reasons you are investing in property and the reasons should be written down and transferred into your Property goals.

Some of the reasons you may consider are:

-Reliance upon capital growth
-To add value
-In readiness for your pension
-Inheritance for your kids

Once you have set your goals stick by them

For instance if you want to buy properties below £125k in your specific area concentrate on these type of deals rather than be distracted by say a villa in Spain which does not fit your investment strategy. You strategy will of course evolve over time and the more you learn the more competent you will become in property investment.

Another fundamental question is to understand how much time and effort you can put in your property investments...you want to manage your properties yourself or are you happy to pay a fee to the local letting agent.

Your investment strategy has to be specific and not too wide. For example some Investors buy properties all over the World and get somewhat "sucked" in by the marketing of various International investment companies. In order to manage the legal and tax implications can be difficult. Personally aim close to home initially and in a specific area; for example in the North West of England. This way you can keep a good eye on your investments and really get to know the areas to assist you to make your decisions with confidence.

An exit - essential for property investment strategies

When the marketplace gets tough how do you intend to exit or indeed cope with the marketplace. What are the triggers that will make you hold or sell?

You need to look into the factors affecting rental demand, rental yield and sale ability as well as UK interest rates and financial products available in the marketplace. It is always good to have a savvy broker onboard who can assist you with this. We can assist with this through our brokerage arm where we can support you with a specialist buy-to-let mortgage broker.

Property is a long term investment

Often the mindset of an investor should be prepared to hold the property for 5-10 years to see capital growth. Hence you will need to be prepared during difficult financial periods and think ahead as to how you will sustain your portfolio.

To wrap this session up:

-Know the current property investment strategies
-Decide where you want to invest and the type of below market value properties
-Narrow your criteria to meet your goals
-Decide upon how much time and effort you would like to put in
-Work out your exit strategies

Keep an eye out for Part 2 - It will teach you how to actually source BMV deals!

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