Buying property is probably the biggest decision you’ll ever make in your life, in terms of finance. So it’s no surprise that it can be a stressful and difficult process, especially if it’s an investment. It also comes with a number of associated risks. All of which can be off putting to first time investors.
However, the rewards of property investment can also be spectacular. If you are successful, property investment is a great way to earn passive income, and can open doors to a new career in property development or building a portfolio.
So how do you get started? Here are some tips for what you need to do and know before you start.
Assess your finances
The most important part about preparing to invest is making sure you can afford it. Stretching yourself a little is good, after all, you have to speculate to accumulate. But over-stretching yourself could be disastrous. Think about how much cash you can spare to invest and whether there are loans that suit your circumstances.
Before you start looking for properties, make sure you can afford them with pre-approval from a lender. Here in Norwich there are banks, mortgage brokers and building societies who can pre-approve you for loans, which helps to set your budget. It also speeds the process up down the line.
Set your goals
You need to think about what you are trying to achieve with your investment. What is your ultimate goal? What is your exit strategy? What’s your timescale?
Is this a plan for your retirement or simply a way to make some extra cash? Start with you end goal and work backwards from there.
Budgeting is boring. There’s no getting away from it. But it’s also 100% essential. Plan out your income and expenses and be realistic about what you are going to need to spend. This includes expenses down the line, such as replacing kitchens, bathrooms and more. All of this should be built into your plan. There are plenty of online budget planner tools you can use.
Get advice about the market
Everyone likes to think they understand the property market but the reality is a little different. Markets behave in different ways in different places so you need local advice. Here at Agile, we can help you to find the most suitable part of Norwich for your budget and investment plan. We can identify the best properties and offer insight into expenses, costs and fees. With our help, you can make the scary first steps into investing a lot less daunting.
To find out more about the local and national property market, or if you would like to chat about anything to do with property investment, give us a ring on Norwich 01603 567804 or send us a message.
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