Whether you’re looking to invest in just one property that is your family home within your lifetime, or if you want a large portfolio, it’s important to understand the property market.
By getting to grips with how it works and how to utilize your property or properties to make a profit, you’ll find that investment in the property market is one of the best ways to spend your money.
With that being said, how could you help to maximise your property in order to make more from your investments? Let’s take a look at how you could leverage your property investment to make your money work harder.
Perform market research
Firstly, you’ll want to take a look at the performance of the market and whether it’s the right time to make a purchase. Sometimes it can be a buyer’s market and other times, a seller’s market. When you’re investing in a property for the first time, you want to find a buyer’s market. That way, you’ll hopefully get a good deal for your money.
When you come to sell, you want the opposite to happen so that you can get as much profit for the property as possible. It’s also important to pay attention to the local areas in which you’re looking to spend your money. While the market in general might swing one way, you may be looking somewhere in which it’s going against the market norm.
Certain areas are going to be more affluent and attractive to buyers and other areas might struggle to get buyers through their doors to sell the property. It’s good to take a closer look at where you’re looking to buy and what that particular area is doing for sales.
Set targets
To help build your investment portfolio or to simply buy your first property, it’s good to set targets so that you have some direction about where you want to go and what you want to achieve.
For example, some people who are looking to get into the property market will do so by buying a home that needs fixing up, selling it and retaining the profit to buy the next property. Others will save the deposit to buy one house after another so that it can be rented out.
There are many variations to owning a property and having it as an investment. It’s good to set yourself some personal targets so that you can hopefully achieve everything you want from the investments you make in the property market.
Manage your finances
Finances are important because you’re going to need the money necessary to put down deposits or buy the property outright. Everyone has different finances available, with some using life savings and others giving a helpful head start with thanks to their parents or loved ones.
Whatever situation you’re in financially, it’s a good idea to get a perspective on your finances. Understand what it is you’re looking for financially and then assess whether you have those funds available now or if you’re going to need to save for a while before pursuing a property purchase.
It might be a good time to take a look at your outgoings to save money where possible. Take a look at your outgoings and where money might be spent in a way that needs to be kerbed before it gets out of hand. Wasted money could have been in your back pocket, helping you to pay for the property you want right now.
Start your portfolio with one property
If you have ambitions of owning multiple properties, then it’s important not to get ahead of yourself too early on. If you’re borrowing money from the bank or lenders, then there’s a certain degree of risk that comes with each property you intend to purchase. Even if you’ve got enough in the bank for multiple properties, it’s certainly worth starting your portfolio with one property.
That way, you can begin to learn the ins and outs of owning a property, without the stress of needing to make the likely mistakes you’ll make but with multiple properties.
As you grow your portfolio, you’ll find yourself learning and adapting so that you make fewer mistakes with the next investment. Building your property will certainly take time but it’s important to take your time so that you can learn the intricacies of property ownership and management where you want to hold onto that investment for the long-term.
No two properties or property ventures are the same, so it’s good to take the time to learn from each one of your experiences in buying a property.
Work with the right agents
There are plenty of agents to pick from when it comes to buying or selling a property. Every agent will take a slice of the profit through a commission, so it’s good to do your research and consider how much of a percentage or set fee, you’re willing to give up.
Finding the right agents for buying a home is the same as getting the right agents to sell it. When you’re buying, the agents you’re buying from will be favourable towards the seller, so it’s good to be aware of what properties they have on their books and how likely you’ll get the best price for a property.
It’s worth exploring multiple estate agents, like Harper Macleod property listings for example as well as other listings in the area. Be flexible about the location where you can so that you give yourself the opportunity to see some wildcards along the way.
When speaking to the agents themselves, make sure they know exactly what you’re after from a property. It’s going to be the time they’re wasting if they end up showing you properties that have no relevance to what you’re after.
That can only be avoided if you’re specific with the estate agent and what you’re looking for. Make sure you have a list of must-haves for them to work from.
Be cautious and detailed with viewings
In order to be successful with your purchases, you’ll want to be cautious when it comes to viewing properties. Don’t feel like you’re being invasive when you view a property, after all you’re the one spending a lot of money on it.
From opening cupboards and closed doors to inspecting windows and doors for faults. It’s important that you’re detailed with your viewings and there where possible and needed, you’re seeing a property more than once.
If you have any reservations or feel like your questions haven’t been answered in enough detail, then it’s certainly worth asking the vendors directly if you get the chance, or speak to the agents.
When viewing properties, it’s essential that you trust your gut. That way, you’re more likely to secure the home or property you’re after.
Learn how to negotiate well
It’s important to know how to negotiate and to do it well. Learning how to negotiate will come in handy when you’re trying to buy a property. Sometimes, you might need to go in above the asking price if it’s popular but most of the time, the price advertised is not always the price that buyers end up paying.
With negotiation, you want to be cautiously optimistic and realistic in your offer. Anywhere between 5-10% is a good amount to offer under the asking price. Any more and it’s likely to be dismissed or even rejected and any other offers are no longer entertained.
If you’re keen on a property, it’s beneficial to not show it in your reactions or in your actions post-viewing. It may be worth leaving sometime in between viewing the property and then putting in the offer. That way, you won’t come across as keen to the agents or the sellers themselves.
Expand your portfolio with a variety of property types
To help with maximising your property investment potential, your portfolio should be made up of a variety of property types. From rental to fixer-uppers, the more variations you have, the more you mitigate the risk that’s presented through property investment in general.
It’s worth doing your research and finding what property types are going to be best suited for your budget or savings, as well as your lifestyle.
For example, doing up a home might be something that takes too long or that you don’t have the resources available to do yourself to save money. You may find that opportunities where you simply put in your money and watch it grow are more up your avenue.
However, it’s good to diversify your portfolio as best as possible when it comes to properties but investments in general.
With these tips, you’ll be able to maximise every investment opportunity you come across in the property market. Make sure to follow these tips, do your research and only invest in properties that you feel confident with. You should also be mindful that any investment you put your money into is not always guaranteed to be successful.