Sam Lee
Many people first come into contact with real estate investing when they purchase their own homes, but fail to take the extra step of purchasing an investment property, assuming that achieving financial freedom is an impossible challenge. Purchasing real estate as an investment doesn’t have to be more complex than purchasing a home for yourself, but you do have shift your focus away from the emotions of buying a home to objective factors such as the numbers, location and the end user of the property. A great place to start are the ‘What, How and Who’ questions of real estate investing.
What You Buy
When it comes to investing in real estate, you need extreme clarity on your requirements. Location is often touted as the most important thing, but it only constitutes one area of the investment criteria. There are other important things to consider such as the available tenant pool, development potential and tenure (freehold or leasehold) of the property. In short, you should have a non-negotiable criterion that filters your choices of investments, leaving only the best opportunities.
How you Buy
The second component of starting successfully is knowing the ‘how’ of your investments. This covers everything from understanding the terms of a deal to the more technical aspects such as the interest rates, pricing, occupancy and costs. After knowing what you want, you now need to know on how to negotiate and push for the best deals towards acquiring that property. You must develop the ability to recognize a good deal when you see one and know ‘how’ to set the terms in your favor. A bad property with good terms might still be a deal, and a good property purchased with the wrong terms could be a recipe for disaster.
Who you Know
Many people have the idea that real estate investing can be done alone, but this is simply not true. Networking with the right people is essential to having success in property investing. This can include knowing which bank to borrow from to which property agents to work with. It is important to surround yourself with people who want to help you succeed in order for them to succeed with you. Focus on building a network group with people who have specific knowledge in fields that you might not be highly familiar with such as accountancy, financing or interior design. It’s not an exaggeration to say that your network determines your net worth. Social capital is key.
Are you interested in growing your wealth with Real Estate?
If the answer is ‘yes’ you may be interested to learn more at the property & investment seminar coming up in September. Spaces are limited and more information is available from Info@JMLProperty.Com
Sam Lee is a marketing manager and property consultant at JML Property. JML was established in 1994 and offers Investment Property & Homes. It specializes in managing properties for owners and investors, and providing attractive and comfortable homes for tenants.
www.JMLProperty.com
info@JMLProperty.com
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