Making mistakes on your property journey is easy and more common than you think. That’s why, in today’s blog post, we will be sharing common property mistakes that you should avoid making when you’re on your property investing journey.
1. Not knowing why, you want to become a property investor
Ask yourself what you are looking for as a property investor. You must have a good understanding of why you made the decision to become a property investor. Without knowing what you want to achieve, you’ll end up running around in circles. Take some time to write down your goals to gain clarity and direction.
2. Investing away from your area of residence
We see a lot of investors using the scattergun approach where you invest in areas all around the country and before you know it, you have different properties in different areas of the UK. We recommend investing within 60 minutes of where you currently live.
3. People wait too long before putting in an offer
Don’t overthink the process. Find deals and analyse the deals. If it’s a good deal, the numbers have a positive return and you’ve done your research, then just go for it.
4. Saving up for deposit pots the old-fashioned way
There are faster ways of using other people’s money to build your property portfolio. You can secure your first investor through networking events, social media, reaching out to private funders and putting yourself out there!
5. Rushing and buying something just because you want to get a property deal over the line
You don’t want to rush the process and you need to make sure it’s a good deal in a good area.
6. Overpaying for your properties
Don’t overpay for the property and make sure you try to get below market value deals.
7. Not charging the correct rent
You are either charging too much or too little. Make sure you do your market research and charge the appropriate rent in the appropriate area. Charge maximum rent if you’re providing a maximum service.
8. Not looking at your numbers correctly and buying purely on emotion
It is so important that when you do the deal analysis that there is enough cash flow at the end of the month. The deal needs to give you constant cash flow and go up in value after a period of time.
Before you go …
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