Top 8 Tips – Buying Your First Investment Property

By on February 4, 2014 in Investment Tips with 0 Comments
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Many of us have dreamed about being our own boss and making a difference in our lives financially but how many of you are really ready to do it? Does anyone even know how to go about it in today’s economy? It’s true, the economy isn’t what it used to be but there are still some very lucrative opportunities out there for those who have the desire and the dedication to go after that dream. Normally I advise people about pursuing business opportunities, getting out the rat race. However, today, I’m talking about another opportunity – purchasing and owning investment property.

property market

Property Market

The property market is wide open and there isn’t any chance of it slowing down as, no matter what the economy holds for us, we all have to have place to call home. You can be that person supplying these properties to renters as you build up your investment property portfolio – whilst building up a nest egg for your future.

However, despite all the stories about getting rich quick from property investments, there are many who are not. Many investors, I meet, actually have negative equity. One is even only making £100.00 per month net. Hey – no money there!!

So here are 8 very important tips for first time investment property purchasers:

  1. Location is the key. Let’s face it, if you’re going to invest in property outside your local area, you potentially have difficulties. For example, if something goes wrong and you want to check it out it can be a big hassle getting down to a property that’s hours away, if to buy overseas you have all types of language barriers and legal costs to think about.


    Location is the key

  2. Don’t go overboard on repairs/refurbishment. You want to make the home decent and livable but it doesn’t have to be a palace. This sounds obvious – we have all watched homes under the hammer– but the number of people I meet that still go significantly overboard is ridiculous. What you want in your own home and what you budget for an investment property have to be two different things.
  3. Stay in it for the long run. Don’t think about flipping a home right away, ride out the market fluctuations and make a nice income from the property while you’re at it.
  4. See a property for what it can be, not what it looks like now. By viewing a property in this sense, you might get the better deal as others may turn it away.
  5. ALWAYS hire skilled workers to do the necessary repairs. I can’t stress this enough, it just makes more sense to do a job right the first time than having to do it again and again which will cost more money in the long run. That old motto – “you get what you paid for” – still stands.
  6. Screen your tenants. Tenants do have rights, but you should still screen everyone that is a potential candidate to live in your investment property. This is very important and will save you a lot of headaches in the future. I cant stress this more – get bank statements, references, ID (new government regulations). I even know an investor, who visits their current home to see how they live – a great indication of how they will treat your property.
  7. know the rulesKnow your rights. As I have just mentioned, tenants have rights, but so do landlords. Make sure you know your rights and understand each one of them fully. There are different tenant contracts – each making it easy or difficult for you to evict someone. We all know the horror stories here!!
  8. Enjoy your investment property benefits. Not only do you get a passive income, but you will also get many tax benefits and the pride of knowing that you are on your way to becoming your own boss. Find out about the tax benefits (and make sure you keep all those receipts).

There you have it, 8 of the top tips for anyone considering buying investment property. Do you have some of your own? If so, leave a comment for us and we’ll be sure to respond.

Kind regards

Zena Hinds

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