An increasing world population makes the property market less volatile than other investment options. Putting it plainly, people will always need a place to live.
Property can be one of the most lucrative ways to make the most out of your savings, to be successful it must be done properly. When investing in property there are many factors to consider and a lot of money at stake, so it’s crucial you do your due diligence prior to making any big decisions. Failing to plan could have its consequences, but this is easily avoidable if you have a strategic and well thought out plan put in place.
The famous saying goes…“Hindsight is a wonderful thing, but foresight is better.” So, with that in mind, what are the four most common mistakes people make when investing in property and how can you avoid this?
1. Not Planning Your Investment Objectives BEFORE you Invest
When it comes to investing in property it is vital to plan your investment objectives before you make any big decisions. It’s important to know why you are investing. What’s your investment timescale? Do you want to benefit from income now, or in the future? Are you investing for retirement purposes? Planning your objectives before investing will help you to get the outcome you want from your property investment.
2. Investing Without Any Advice
We understand that you may want to control costs but scrimping now could actually cost more in the long run. Seeking advice from professionals who are trained& qualified will help you to navigate through the complexities, meaning ifyou are presented with bumps in the road, you won’t have to face them alone.Skybound’s Property Division was set up to maximise our client’s opportunities and to provide international investors with a complete turnkey service encompassing sourcing, managing and beyond.
3. Too Much Haste, Too Much Hesitation
Investing in property isn’t something you should take on lightly. Acting too hastily or too hesitantly could have negative effects on the outcome of your investment. It’s important not to rush to sign the dotted line (where possible). If you have the luxury of being able to mull a deal over then you should do so. Talk it over with your advisor and get a second opinion before you rush to sign the contract. On the other hand, too much hesitation can also be a problem. If you take too long to come back on a deal, someone else may swoop in and snatch up what could have been a very beneficial investment. It’s important to strike a balance somewhere between the two. Be cautious, but also be mindful of time and consult with your adviser, don’t forget, they do this every day!
4. Miscalculating Budgets
Once you have invested, it may be time to start thinking about managing your property investment finances. Doing this wrong can have considerable consequences so it’s important to give this a thought.You may have rent income or on the other hand rent short fall. You may have expenses such as mortgages, maintenance and repairs to pay out. It is wise to project your cashflow and, in some cases, have a buffer amount laid aside to cover unexpected costs. Having a financial adviser on hand to help you plan for this sort of thing could really take off some of the stress involved with property investment.
Fortunately, many of the struggles some investors face can be avoided with proper planning and the help of an experienced wealth management service. Here at Skybound, we can help create safe, comfortable homes and source reliable long-term tenants to achieve the best possible rental yields for your investment.
So, Why Skybound Property?
Interlinking with existing Skybound Group services, Skybound Property provides an end-to-end property investment service right from sourcing and financing a property, ensuring all the relevant protection is in place, through to ensuring the very best return is achieved when a client chooses to realise their investment.