Four rules to stick to before you invest in property

Fsp Invest, 28 Jan. 2014

Tags: investing in property, investing, property, investor, property investor, tips, professionals, location, market, research, potential yield, rules, tips,



Investing in property appeals to a lot of investors. Not only do you own a large asset, you get the added bonus of making a monthly income from renting it out. But before you leap in, there are a few things you should consider. Read on to uncover four rules to follow before you become a property investor…



With the large financial undertaking involved when you invest in property, doing your homework is essential, Francois Joubert, author of Become a Master Property Investor in 90 Days explains…

So to help you make the best decisions, stick to the following rules:

Rule #1: The importance of ‘good’ professionals

If you’re new to property investing, it’s a good idea to use good professionals to advise you on your investment. You could later use them to let and manage your property.

You don’t have to give the business to the rental department of the agent you buy the property through (if there is one). But there can be advantages if the firm’s a sound one.

Ensure you always ask agents to put their advice in writing.

Rule #2: Location, location, location

The location of a property will determine, to a large extent, whether it’s likely to be an excellent or a poor investment.

‘Location, location, location’ may have become a cliché, but it still holds true.

Rule #3: Research your market

Remember, a good investment property must appeal to the maximum possible number of good potential tenants. A small property will often have a larger potential market than a big one.

Rule #4: Think about the potential yield

Don’t buy the very best for a residential investment property, even if you can afford it. The yield is likely to be significantly lower than that produced by a decent second rate property.

Don’t rush for the very cheapest option either. Good tenants are unlikely to want to rent a third rate property. And in bad times, its capital value may plummet.

But the worst property in a good street is likely to be a better investment than the best property in a bad one.

So there you have it, four rules to follow before you become a property investor.


Related QA

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Washington asked:
Good day good people If you bought Master property in 90 days please email me washingtonmuavha@yahoo.com or get hold of me 0790559477 your help will [read more]
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thomaswreid asked:
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