Being a little apprehensive when considering your first property purchase is not unusual. Indeed, sometimes it can actually be beneficial to heighten your awareness and help you avoid potential pitfalls and errors.
However, this nervous feeling can get to the point where it takes over your decision-making ability and you get caught in a loop of analysis paralysis! You may even start to consider putting off the purchase altogether. In these circumstances, fear is no longer your ally, but your enemy.
Here are a few steps you can take to overcome this apprehension.
Step 1 – Establish a powerful ‘why’
If you’ve not heard of this concept before, let us briefly explain it. It’s easier to withstand pressure when you really understand the reason ‘why’ you are investing in property.
If it doesn’t inspire you, if it doesn’t make you feel powerful; if it doesn’t bring tears of joy to your eyes when you think about your ‘why’, it will not be strong enough to overcome your apprehension.
Let me give you a personal example:
My own ‘why’ is that I want to be able to control my time and I want something that has the potential to solve any money challenges that arise. I never want to be in the position where I have to explain to my wife and children that I can’t give them my time because I have to go to work. I also want to share the knowledge that I have to help other people create financial security and freedom. My ‘why’ is tied to the things that matter the most to me; my family and being a net contributor to society, and that’s why I do what I do.
For you it might be to be able to provide your children with a leg up in the world, or to know that you will be able to retire comfortably, or just to be free to do what you want to do.
Step 2 – Leverage the knowledge of experts
None of us know all there is to know about everything; that’s why we leverage the knowledge of people that have been there and done it. Buying a house is one thing; investing in property is another matter entirely. It’s not just about seeing a property you like the look of and buying it. There is far more to investing in a BTL property, especially if it is in a different city from the one you live in.
Reaching out for help is an important first step in ensuring success and usually those people can save you thousands of pounds with their knowledge and expertise.
You’ll need to understand what to look for in a good property as well as where they will be located, and how to agree the best price. You can also get help with the purchasing, refurbishing and renting process as there are a number of due diligence steps that could you don’t end up with a dud property or bad tenants.
Step 3 – Understand the facts
The most difficult roadblock to overcome is a perceived obstacle and that’s because, generally, it’s in our minds.
When it comes to investing in your first property, there are few apprehensions that you might encounter:
1. Will I be able to get a BTL mortgage?
2. What if the refurbishment goes over budget?
3. Will the property rent out?
4. What if I get a bad tenant?
In reality, these perceived obstacles can be easily overcome with some facts and pre-planning.
1. Consult a mortgage advisor and get a decision in principle.
2. Get a reputable builder to give you a fixed price quote before completion.
3. Do your homework beforehand and use a reputable letting agent with a good vetting process.
So, if your mind is creating obstacles that are blocking your progress to investing in your first BTL property, don’t panic. Write them down and one by one, gather the facts to eliminate them for good!
To sum up, don’t let fear stop you from investing in your first BTL property and creating financial freedom for you and your family. If you can make it over the initial hurdles, you will have an asset that will produce a monthly income and will increase in price over time. In 10 years’ time, you’ll wish you had stopped worrying and got involved sooner.
If you want to find out how we can help you get started on your property investment journey, register your interest today!