Purchasing your first home can seem like a daunting task, and many people become totally overwhelmed with what certainly seems to be a mountain to climb.
However, if you take it step by step and do your research prior to the purchase, you will wonder what all the fuss was about, and your next purchase will be easy!
If you are intending to invest in property as opposed to buying your own home, then of course this is a different story, your goals are different, and the amount of investment funds you have will play a big part. You want to be earning money as quickly as possible by investing in high growth property such as a hotel room investment.
Of course, there are many elements to this. Finding the right property in the right area, do you want to “flip” properties – buying run down properties and renovating them yourself to then sell? You want to get tenants into your property and start earning.
All of the above play a major part when investing in property for returns, you certainly do not want to invest in a property that eats your money and then is slow to give you returns.
Estate Agents – use them for their knowledge
Most people know someone who is either an estate agent or has a property to sell, and there are now so many in the housing market from High Street agents to on-line agents, they seem to be everywhere. For you, the buyer, you must ensure that you are using a reputable agent – often a friend or relative may have used a good agent, and one that comes recommended is always a good choice.
If you are an investor, then look for an agent whose speciality is investment properties, you can explain your exact reason for purchase and as it is their forte, they will be able to match you to properties instead of wasting time.
It could well be that you are looking for properties that you wish to rent out as soon as the purchase is completed, and you can explain that to the agent so that you are both on the same page and they can manage your expectations.
Even if you are using a good agent, you will of course have to do your own research so that any transactions you enter into, you are also fully up to speed on. You can identify what to look out for and the properties potential and pitfalls, as you certainly do not want any surprises when it comes to completion.
Try to think how a buyer or renter thinks
A golden rule when buying as an investor is to put your own personal preferences aside.
You may well live in a detached property and would never consider living in a terraced property. But remember everyone is different, and budget has so much to do with it. Think like a potential renter and your property will be let out quicker, as normally the investor is a person who is in a good financial position, which cannot always be said for potential renters or first-time buyers.
Keep an eye on market trends. What is selling and how fast, which areas are more appealing, and what are the current shortages in the market that you, as an investor, can fill. By doing this, you are supplying the demand, and this will allow you to move quickly towards your investment goals.
Surveys and Property Inspections
There is the old saying that if something seems too good to be true, it often is. So, to protect yourself, never buy without having the full survey and inspections done.
Yes, it will cost you money, but it may well save you a bundle of money in the long term.
Once you have found a good inspector that you can trust, keep him by your side for future transactions. It is always good to have a team of people that you can call on that you know will not let you down – remember, finding a top-class home inspector should be at the top of your list.
Tarik Pierce is the founder of InvestorTrip.com and regularly contributes articles to this website.
While living overseas, he uses PureVPN for a low cost VPN service.
He recommends Bluehost for setting up your own personal and/or business blog.
While his background is mostly related to trading stocks, he recently gained interest in real estate crowdfunding with Fundrise.