Every new year brings about huge changes for many people, and the same goes for those who wish to take the leap and invest in property or another asset. 2020 is no different, as despite being the turn of the decade, there are still things to learn and remember when spending large amounts of savings and money in general.
As an investor, there isn’t exactly a handbook you can follow, page for page, which means you must create your own journey and learn from mistakes. However, there is information out there that can help and guide you through the process of investing, especially where the market is right now in 2020. As an investor or potential investor, you want to ensure that your investment will be as successful as possible, which is why we’ve listed things every investor should know in 2020 below!
Property investment is a highly lucrative asset
When investing in property, you can stand to make lucrative returns, as if you buy a property and let it out to tenants or students, you can make your money back for the property and then some more. Plus, you will also have a property gaining value if it’s in a highly in-demand area. Rental repayments are set at a recommended price that is calculated by a developer or property investment company. Property investment company RWinvest recommend looking for properties in demanding areas, as this will mean your property has the potential to gain value. Cities such as Liverpool, Manchester and Leeds are some of the top buy to let hotspots that are consistently talked about!
There is a slight risk with investment
Unfortunately, an investment can have risks. Property investment is often referred to as the most stable and secure investment type when compared to stocks and shares, but we can’t hide from the reality of loss and potential risk. However, you’re more likely to succeed if you research your target audience (of tenants) and opt to work with a reputable investment company that is known for excellent customer service and being supportive throughout your investment process. If you take the risk of investing in a great property opportunity, it will more than likely mean your efforts pay off, and you end up with a lot of extra rental income and a perfect property for future ventures.
To reduce risk, try to opt for a property investment company who are on Trust Pilot. If a company has an average of 4.5 or above, it’s usually a good, reputable indicator. Remember, don’t invest with a company that could potentially scam you out of money.
Another way to reduce risk, would be to hire a licensed CAM, or Community Association Manager. Having someone manage your properties greatly reduces risk, because in the event that you are unavailable to respond to a tenants claim, or don’t want to have to worry about inconveniences that take up your time, your CAM can handle them in your place, preventing the risk of tenants leaving prematurely and landing you with an extra mortgage. Interested in learning more? Becoming a CAM is made easier using the right tools. Take your Florida CAM License Practice Test here, and see where you stand, and what you need to learn!
Success will come with more properties on your portfolio
As a first-time investor, buying multiple properties can seem daunting. This is especially true if you’re unsure of how successful your investment journey will be. However, remember that the most money is made when investors have various different properties on your portfolio. It’s also recommended that you invest in different areas of the country, or at least different developments. Buying units within the same development is popular with experienced investors and it does bring high levels of success, but it might not be the best choice if you’re only just getting started in the industry. Find your feet with one property first and then venture out when you start reaping the rewards.
