Creating a successful property-investment business can be done at very little initial outlay. It’s true that those who have bigger budgets may find life a bit easier than those who are operating on minimal funds, but this is true in just about any walk of life. What it does require is focus, dedication and the ability to learn. Here are some points to consider before you start.
Where are you now?
Before you begin planning your property-investment business, it’s important to take stock of where you are at the moment. In particular, you need to think about how much time and money you can commit to your new venture, what your existing skills are (and if there are any business areas in which you know you will need help). It’s crucial to be absolutely realistic about this and, if necessary, to be certain you are erring on the side of caution.
Where do you want to be an in what time frame?
The phrase “property investment” covers a lot of options. This means that there’s probably going to be one which is perfect for you, although you may have to do quite a bit of research before you find it.
The basic rule of thumb is that with property investment (as with life in general), the more resources you are able to devote to it, the quicker you’ll start to reap the rewards and the better those rewards will be. For example, if you have plenty of time, money and relevant skills, you could dive straight into property renovations and then either sell on your properties for immediate profit or let them out for income (at top yields).
On the other hand, if you have minimal time, money and/or skills then it would probably be best for you to start with an affordable property investment, which is also entirely “hands-off”, the obvious example of this would be commercial property.
These sorts of investments are unlikely to generate spectacular returns in the way some other forms of property investment can, but they do provide solid, reliable income and can help you to build up investment funds while you develop your property-investment knowledge by other means.
How can you up skill yourself to meet (or exceed) your goals?
Time and money are both very helpful, but knowledge is invaluable.
There’s a lot to learn about property investment and if you choose to focus on it (as opposed to integrating it into your overall investment strategy), then you really can spend a lifetime studying it, but to begin with, it’s usually advisable to choose one aspect of property investment and focus on learning everything you can about it.
The two obvious choices are either location or target market. For example, you could either pick a location in which you are interested in buying property and make it, literally, your business to find out everything you possibly can about it, or you can pick a target demographic, such as students, young-adult professionals, or tourists, and study it in depth. Either of these approaches will give you a very solid foundation on which to take effective property-investment decisions.