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5 Top Tips For New Property Investors

July 21, 2010

I often have people tell me they are *desperate* to get into property and it’s all they’ve ever wanted to do…So as a successful property investor I thought I’d share my top 5 tips for those new to property investment.

  1. Buying property is a business decision. Never forget the purpose of buying a property either to do up and sell on or rent out is to make money. Never ever lose that focus.  Whether renting, selling or renovating – treat your property investment as a business.  Businesses only exist to make money.
  2. Do your sums. There are lots of hidden costs in buying, selling and renting property – you have to allow for legal paperwork, lending fees, surveyors and finance costs to name just a few. Make sure you itemise every item of expenditure to ensure you are going to make a profit.  Always allow contingencies of at least 10% to cover any unforeseen items.
  3. Do your homework. Buying the right property at the right price is the only way you make money.  To know that you are buying right it is critical you research the market thoroughly. Don’t kid yourself that it will work out in the end *you hope*.  Making money from property is about planning for success – luck only favours a few, the rest go bankrupt.
  4. Get funding. It doesn’t matter how bad the market is – if you find a good deal you can get funding. Spend time building up a relationship with a financial advisor/ bank who can get you lending. Then when you find a deal run it past them. Any decent deal will get funding.
  5. Be ready. Property deals are sporadic – you have nothing for months then three in a day. When a deal arises you must already have everything in place – that means having the deposit, having the access to funds, have the legal advisors ready and so on. In a nutshell you must be ready to buy at a moment’s notice.
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