5 simple strategies & tips for investing in property


Tips for succeeding in Monopoly and Tips for Investing in Property bear striking similarities to each other ... photo by CC user Philip Taylor on Flickr

Investing in property is an excellent way to make your money work for you but it can be somewhat daunting being new to the market without prior real estate experience. With large sums of money at stake, anxiety about investments can add stress and strain. Thankfully there are straightforward strategies and tips that can decrease the risks and put the odds of making a tidy profit more in your favour.

  1. Research and Due Diligence

Before spending money purchasing property, buy yourself an education in real estate investment. Google the top selling investment books and borrow them from the library or buy them outright. Read reputable internet forums and become familiar with the language and principles used as well as the mistakes that are common to newcomers. Join a local property investment club, learn some sound strategies and then develop your own. Pitch your plan to your club and gladly let them punch it full of holes. It’s better to invest from an informed position than to take a blind punt and merely hope for the best.

  1. Location, Location, Location

Probably the greatest truism in property investment is the old cliché regarding location, location, location. We’ve all heard it said over the years but this advice still remains as wise and sound as ever before. The strategy is to purchase property in a great location that will continue to grow in popularity and value. People often say to purchase the worst house in the best street as the land value in a well sought after area should continue to rise over time and eMoov, the online estate agent agrees.

  1. Protect Your Roof

Old school investors know the value of this phrase, which simply means that when investing in property, secure a roof over your own head first and don’t risk losing it by using it as collateral for further investments. If something goes drastically wrong you’ll always have the security of knowing your own home can’t be lost or taken out from under you.

  1. Start Small

Be willing to think big, but start small. Some people make their first investment by purchasing commercial property such as a parking space, a small kiosk or market stall. As long as it can be rented out to someone willing to pay a fair price it will bring in income and can likely be sold again in a few years when it has accrued more value. Playing it safe means there is little to lose.

  1. Rental Property

One of the most straightforward ways to invest in real estate is to buy a property and rent it to a tenant who helps pay the mortgage down over time. The simplest form is renting out a spare room in your home and using the additional income to exceed the minimum mortgage repayments and reduce the term of the loan. Renting out the entire property can yield even more funds to pay off the mortgage sooner. Ideally, the rent should at least cover the repayments as the property increases in value over time.

Like anything worth doing well, investing in real estate takes research, planning and consulting with trusted and experienced advisors who are willing to lead the way. By playing safe and smart you can be more certain your investment strategies will bring you a satisfying return you can be proud of.