Last updated: 29th November 2019
We aren’t holding back on this one. If you’ve come here to find the truth about investing in buy-to-let property, you’ve come to the right place.
These are the brutal truths about property investment that you won’t hear from anyone else. That’s right, we’re going to be dropping some truth bombs so you can understand the many frustrations that come along with being a property investor. Property investment certainly has great advantages, but we want you to learn about the things that can go wrong too. Because that’s just as important.
So what do we think?
Honestly, property investment can be a bumpy ride. Most of the time, buy-to-let is only spoken about in a positive way, but it’s important to be realistic and talk about the things that can go wrong. You need to have a clear strategy and goals in place, so you’re clear on where you want to get to and (hopefully) you won’t make as many mistakes. Many businesses are only in the property game to make money; they tell you the results, but they won’t mention what can go wrong and how hard the process can be. Yes, great things can happen if you invest in property, especially over the long term, but things can go wrong at all stages of the journey. It’s just easier to deal with if you’re prepared for it when they do..
Yes, you need money to invest with. If you spend any time on the internet, you’ll come across many advocating ‘no money down deals’, telling you that you can invest without a penny of your own cash. Alarm bells should be ringing that this is a highly risky strategy! You need money to invest in anything. You simply can’t invest without money.
We cover this in more detail here.
You’ll have seen all the adverts ‘get financially free in a week’,’here’s how to get rich quick’…
It’s a con.
What this is doing is preying on the vulnerable, and on those who desire to get rich quick.
If you’ve gotten into property to get rich quick, then this industry is not for you, as investments take up a lot of your time. And investments can go down as well as up.
Property is a fantastic investment, it can offer amazing returns, but you have to put in some effort (and that all important initial cash injection) to get those returns. This is not a get rich quick scheme – you’d have more chance of winning the lottery.
Yes, property investment will take up your time. You have to do your research, go to viewings, talk to professionals like mortgage brokers and then manage your property which will take up a fair bit of time.
None of this is a bad thing; it’s all completely normal. But if you want to do it all yourself, it’s going to be very hands-on. And that’s something to prepare for.
And if the hands-on route isn’t for you, you can appoint a letting agency or management agent to ease the load.
Now we’ve given you some food for thought – how are you feeling? If you want to know more truths about investing in buy-to-let property, have a listen to a recent podcast we did.
Property investment is all about your goals and strategy. Having a clear plan and strategy will stop you from making a fair few mistakes, but we want you to know that property investment isn’t all doom and gloom. You can certainly win big when it’s done right.
No-one can become successful within a week, it takes time and dedication. If you’re willing to put your time and effort into investing in the right deals, then property can be a fantastic investment for you in the long term.
We don’t make a habit of being negative – it’s simply not our style. But we wanted to highlight the downsides of property because it’s very rarely done. Many providers sell property courses with a guaranteed mark of success, but that isn’t the case. Understanding the realistic sides of investing will allow you to understand that something can go wrong at every stage in the short term, but when you’re prepared for it and can overcome it, it’ll be worth it in the long term.
If you’re not yet clear on your goals, did you know you could book a FREE goals call with our team right here?