Understanding what could limit your property investment success
Property investment success will buy you the retirement you desire and deserve. Once you have decided upon your SMART objectives for retirement, you’ll have taken the first step on your property investor journey. Before creating your property investment strategy, you should understand that some factors that might limit your success.
In this article, you’ll learn about the major roadblocks that beginner investors face, and how to overcome them.
Roadblock #1: “I don’t have enough cash to invest”
A common excuse for not investing in property is that you don’t have enough money to invest. The first point here is that you’ll probably want to borrow to invest, and take advantage of the benefits of leveraging in property investment. Even so, you do need some cash available. You’ll need a deposit of between 25% and 40% of the property value. There are various ways you could find this money. For example:
- You could use equity release as an effective property investment strategy. If you own your home, you might be sitting on a pot of value that could be earning you income and capital growth if invested.
- You may already have savings that can be used as a deposit. If you don’t, learn how to save for an investment property quickly. There are plenty of simple things you could be doing to save and earn extra money. A couple could save £18,000 or more in a year by budgeting, spending more diligently, and earning a little extra cash.
- Consider your current investments, and re-evaluate any that are underperforming. Could this capital provide better returns if it were used as a deposit on an investment property? You may be surprised when you discover the spectacular real yield on your money when you invest in property.
- Other ways that you might be able to raise the deposit for your first property investment include tapping into the Bank of Mum and Dad. You may have come into an inheritance or received a bonus at work.
The thing is this: if you are serious about investing in property, you’ll find a way to get the deposit together. Be a little imaginative, think about your current financial position and the assets you have, and take action. Make a plan to raise the deposit – for many; this is the first milestone in their SMART objective.
Roadblock #2: “I don’t do risk”
I don’t blame you! I hate risk. Yet I invest in property. How come, if I’m so risk averse?
I understand that there is some merit in the saying ‘speculate to accumulate’. I understand that some risk is necessary. I get to know these risks, and when I do so, I employ appropriate strategies to reduce my risk to a minimum.
For example, on some of my investment money, I want guaranteed income and capital growth. If I’m able to lock this money away for a few years, a hotel room investment might be better than BTL property.
If I want to benefit from the possibility of higher capital growth and increasing rental income, then investing in buy-to-let property could be the route to achieving my financial objectives. It may be riskier, but by conducting proper investment research and being conservative when calculating cash flow, I’ll reduce the risk of buying a bad investment property.
Risk boils down to fear. Reduce the risk, and you reduce the fear because you increase the certainty of your investment property performing as you want it to.
Roadblock #3: “I don’t have the time”
None of us has the time to spend on investments. Our daily lives get in the way. If it’s not work, it’s the kids. If it’s not the kids, it’s your mates. Then all those little chores need doing around the house. And the last thing you want to do after a hard day at work is to spend hours researching the best places to invest in property UK. But if you don’t make time to do your research, you’ll either never invest, or invest poorly. And either of these outcomes will destroy your retirement plans.
The answer, of course, is to treat investing in property as you do other parts of your life. When your car needs service, do you do it yourself? If your roof needs fixing, do you rush to get the ladder out of your shed? When you’re planning a family holiday, do you spend hours contacting airlines, hotels, car hire companies, and airport transfer companies directly?
Find the property investment partners you need, and let them do the hard work for you. They’re the professionals, after all. Make use of them – investment experts, mortgage brokers, accountants and solicitors. You’ll save yourself time, make better investments, and reduce investment risk.
Roadblock #4: “I don’t have enough knowledge to invest in property”
I hear you! But I bet you had felt the same way before you started driving. And before you learned to cook, you had no idea how to make a meal from a few lumps of cheese, a couple of tomatoes, and a half a dozen eggs.
Whatever it is that we do, we must learn first. Property investment education is the key to making life-changing investment decisions. I do believe this. That’s why all our property investment education is free. When you think property, think Gladfish. Explore our Property Investment Academy – you’ll find:
- Investment guides
- Property education for all levels – beginners, professionals, and overseas investors
- Investment education courses
- Details of our latest webinars
- Thousands of articles covering all aspects of property investment
- The latest property news
- Videos
- Downloadable books
- And more
And it’s all free, and available for you to read, review, and work through at your pace.
Get rid of your roadblocks! Invest without the limitations of others. Contact one of our team today on +44 (0)207 923 6100, and we’ll help you discover what is stopping you from creating an early and wealthy retirement. We’ll work through your roadblocks together, and you’ll be better prepared to take those first steps towards the future your SMART objectives have mapped out.
Live with passion
Brett Alegre-Wood
