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When learning a new skill, sometimes the best resource is not the textbooks – but the people who have done it before you. In real estate, this is something that many practitioners would agree with.
If you are just starting out, here are some of the best property investment tips and techniques used by experts in the field.
Expert property investors do not just rely on luck or instinct. They research extensively and make use of data to determine the most profitable options. It is a numbers game, after all.
They also know where to access the information they need such as government records, surveys, and published studies. Most importantly, they maintain a network of people with whom they share helpful information.
A common difficulty among inexperienced realtors is the lack of foresight. When checking a property, they tend to judge the property as it is. On the other hand, a seasoned investor will assess it based on its potential value in the years to come.
This is a skill that can take a while to master but it is certainly essential to your success. Otherwise, you may end up making premature decisions and fail to maximize profits.
While you are still growing your financial capacity, it is understandable to be modest and only have one property. However, you have to learn the risks of being dependent on a single asset. The most successful players always diversify their investments. For instance, they will purchase properties in multiple locations.
Read our previous article, Diversification: The Importance of Property Investment Amidst Inflation.
4. They address maintenance issues right away
The physical condition of the property has a significant impact on its price. New investors may sometimes procrastinate or underestimate maintenance issues, only to end up with a bigger problem to solve later on.
Experienced property owners understand well that their assets are subject to wear and tear and that they will need to spend funds on repairs sooner or later. It is important to be prepared for this from the beginning.
5. They set clear boundaries between personal and business
It could be easy to get attached to your property. New investors may sometimes treat their first property like a prized achievement, especially when they have worked hard to finally acquire it. However, this can complicate things later once opportunities to resell come along.
Just like any professional, property investors know how to separate work from personal interest. If you purchase an asset as an investment, then you have to be able to make decisions without bias.
6. They know their Taxes 101
There are aspects of the business that can only be learned through experience; but then, there are some that you should readily be able to familiarize yourself with.
An example of this is your property taxes. It is one of the fundamental things that you simply cannot make excuses for not knowing. Not only is it being responsible, but understanding taxation is a way to protect yourself from penalties and benefit from deductions, returns, and reliefs.
Read out previous article, An Overview of UK Property Taxes.
7. They seek help from others
All successful property investors know the value of having a peer network. They understand that they cannot do everything on their own and they seek the advice of others. They join real estate groups and attend events that will help them broaden their knowledge.
If you are looking to learn from some of the very best in the business, sign up for our upcoming event, The Property Deal Packaging Summit by Jamie York.
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