If you’re thinking about investing in property, you are moving towards a financial decision that will almost always pay off. However, you do need to be careful here because it’s important to take the right steps when investing in property. Failing to do so could ultimately lead to disaster. So, what exactly are we talking about?
Do the checks
When you buy a property for the first time, owners will often do whatever they can to stop you from making the necessary checks. This is particularly true on older properties that could actually be riddled with issues that you’ll never find without the appropriate checks and surveys. Steps taken by the owner could include trying to offer you a far lower price than the property is actually worth if you agree to a fast sale or throwing in extra items like equipment. Go through the sale in two weeks, and we’ll give you a great rideable mower to take care of all that land!
Don’t fall for it. Any buyer eager to stop you making checks knows something that you should and don’t look to the agent for support. Unless you ask the specific question, they are under no legal obligation to tell you what’s wrong with the property.
Speak to a letting agent
Most people invest in property because they want to make sure that their investment is completely hands off. You might have heard that investing in property fits this description and to an extent it does. But it’s important to realize that this is only the case if you make sure you hire a letting agent. A letting agent will help you with any issues or problems that you might encounter when you invest in property. They’ll handle things like tenant bills and make sure that your home is correctly advertised. That’s crucial because an empty property even for a fairly short amount of time can be a real killer with this type of investment and you don’t want that.
There are various letting agents on the market to consider, and it’s just a case of finding the right one.
You are legally required to insure properties you own, particularly if you are renting it out. There are different types like condo master insurance. Make sure you know which type you need and get the full coverage to protect your interests. If you don’t do this, expect a heavy fine.
Sort out your credit
Do make sure that you have great credit scores before you invest in property. This applies to both you and anyone going in on it with you like a partner. A poor credit score will lead to a poor deal on a mortgage. People often think that property investments are a great, fast way to get out of debt. This isn’t the case at all. If you are already in debt, your score will be so poor that a mortgage will just push you further down. Sort it out first to get the greatest deal.
Skip these steps investing in property at your own peril.