1. Carry out proper market research
The basic step, before doing any kind of investment in any sector, is that you should do your own research about the industry. The property market has always shown ups and downs and the nature and volume of the change fluctuate across the regions. Learn the current market trend and future predictions, made by the authorities, as well as gather information about the average market price of the properties in your targeted area. Conversing with the people living around your property area will help you to understand the current market price of the properties in that particular area. In order to understand the pitfalls and the future market trends in the property market, you can speak to people who have experience in the market and read journals and reports from various experts and authorities that are available both online and offline.
2. Plan your budget
You must be clear about your budget on your investment plan; otherwise you might end up spending too much money than actually required or even spending too less money that could have earned you more profit than anticipated. This is really an important matter to keep in mind that property investment is a long-term investment and you must make sure that you have enough cash reserves to meet the contingencies. If your buy-to-let property is lying vacant for a couple of months, paying the bills will seem impossible for you unless you have proper fund reserves. Never over-invest as it will make all your money tied up at one place when the market is down.
3. Choose the right location
Choosing the property in the right location is a very important thing to remember while making an investment. When you target a property for sale or a buy-to-let investment, it has to be properly located considering its proximity to one’s basic requirements, such as shops, hospitals, schools etc. Buying a property within your accessible location will give you more control and confidence over your investment. The ‘location advantage’ is always directly related to the capital growth of the property.
4. Use estate agents for finding the right property
Seeking the help of estate agents, to find your property, is never a bad thing if you are aware of the pitfalls very well. Being the professionals in the sector, estate agents know your targeted area very well and will be able to help you in finding the right property as per your requirements.
5. Insure your property to avoid unforeseeable damages
You do not personally know your customers of your property, so it is always better to insure it in order to avoid any disastrous damage. In modern times, insurance can cover you anything, including full house insurance, protection from different calamities, and insurance for the appliances inside the house. You even have insurance option to the loss of your house rent!
6. Always negotiate for a profitable deal
There are too many players in the investment market due to its global appeal. This fact always gives the buyer the advantage of negotiation. The agents also would prefer to finish the deal as smoothly as possible. Your agent can depict you fancy pictures of the advantages of buying that particular property, don’t fall for their words, instead, and make a move based on your research and understanding; bargain for a fair deal.
7. Get social around the people of your kind
Always try to connect with people who are already in the property business to get updates and the latest news about the property industry. Things like, participating in online forums and groups of landlords and joining various associations of property investors and landlords, increase your insights and make you sure that you don’t miss any leads and clues. The National Landlords Association, National Association of Realtors etc. are some of such associations and in each region you can easily find similar local associations of investors.