Property remains one of the most resilient and stable asset investment classes, but it’s also a topic on which everyone seems to have an opinion.
Over the years we have found that a lot of it comes from people that don’t even invest in property or don’t want you to (we are sure you know a few of these people )
In fact, there is so much misinformation out there, it makes it virtually impossible for potential investors to sort fact from fiction and people often end up taking the ‘safer’ route, which is to do nothing
After nearly 14 years of investing in property, we have seen how life changing it can be and we wouldn’t want other people’s opinions to stop you starting your own investing journey.
So today, we investigate the 5 most popular things that people get wrong when it comes to property investing so that you can start your investment journey with confidence.
1. It’s not a good time
Now, of course, there are times when the market is slightly up and others when it is slightly down. But for people looking to make a great return over the long term, there will never be a ‘wrong time’ to purchase property as an investment.
It’s less about timing when you purchase the property and more about buying the right property and holding it for the long term.
If you play the long game, you’re bound to win!
2. It’s a big risk
When investing money, it is impossible to avoid risk. However, it is possible to manage the risk by doing your due diligence and investing wisely.
Always pursue a future-proof investment strategy and build-in resilience. This means identifying properties that will benefit from both rental and capital growth and spread the risk by investing in multiple properties.
This maximises your chances of success and helps you create long-term wealth and independence.
3. It takes a lot of time and work
Owning a BTL property does involve a lot of work!
You have to find a property, do all the due diligence, and liaise with lenders and brokers to purchase it, and even then, you might have to refurbish it before dealing with the headache of tenants!
There is definitely a lot of work, but you don’t have to do it all yourself. If you use a property investment service, you can get an expert team to carry out the whole process on your behalf, so you just receive a monthly income direct to your bank account.
4. You need loads of money
This is more prevalent when looking to invest in larger cities such as London, where investing in BTL property requires a huge amount of capital.
Today, buying, refurbishing and letting a rental property in the North of England typically costs around £60,000 including all the fees.
This makes BTL property much more accessible. Many people take advantage of the lower costs by purchasing multiple properties and diversifying their portfolio.
5. You can make money quick
‘Homes Under the Hammer’ has a lot to answer because although it is possible to make money quickly from ‘flipping’ a house, it’s also risky. There are dozens of traps that can trip up an unwary investor which can quickly turn profits into stinging losses.
We recommend sticking to strategies that are proven to deliver reliable, long-term returns in the form of rental and capital returns. Given the nature of investments, people should always go in with their eyes open and a timeframe of 10 years+
The Main Take Away
As you can see there are a lot of opinions out there when it comes to investing in a buy-to-let property but we hope we have shown you that it is just ‘noise’ and that it shouldn’t put you off investing.
Still on the fence or want more information, click here to start a WhatsApp chat with our team.