13 Aug How does property investment work?
I’m often asked for advice on property investment, and by far the most common question is, “if there was one thing you could tell me that would guarantee success, what would it be?”
Of course, nothing can guarantee success. But there are plenty of things you can do to make sure you don’t put yourself in a position where the odds are against you. My one bit of advice would be to get advice from people who know what they’re talking about, and politely ignore everyone who hasn’t been there and done that.
Sometimes this is tough, after all your loved ones, friends and family all have your best interests at heart and none of them are trying to give you advice that would be detrimental to your future. But even those closest to you can accidentally harm your chances of property investment success through giving you advice that they hold to be true, and that is wrong. Let me give you a few examples that you may have heard before –
“Always buy the worst house in the best street.”
“Always buy near a good school.”
“Only ever buy in areas you know.”
Now all these may sound like common sense, but every opportunity to invest should be taken at face value without these overarching statements in mind. For example, sometimes the worst house on the best street is a terrible investment; perhaps there are structural issues with the house, or building restrictions from the council. Maybe it’s the bargain of the century…but maybe not.
Buying near a great school is a brilliant plan if there is a significant amount of families seeking property nearby. However, if a majority of the available real estate is student accommodation, will your target demographic really move in? Maybe.
Buying in areas you know is a good idea if there is plenty of opportunity available in those areas. If not, you are limiting your ability to capitalise on opportunities outside of a specific geographic area.
If someone asked me about advanced mathematics, I would suggest they ask someone who has more experience in that area. If I was to offer advice, and it wasn’t to be taken on board that wouldn’t mean that the other person cared about me any less. The difference between advanced mathematics and property investment is that everyone has a certain level of knowledge, and you should respect the views of your family and friends – but that doesn’t mean you need to take those used to heart, and act upon them.
If you’d like to have a chat with someone who has been there and done that, even just to begin your property investment knowledge journey then click here.