Jump to content

How to start out in property


Recommended Posts

Hi Lauren,

 

My view is that whatever path you take depends on many factors such as goals, skill, available time, attitude to risk, time scale, etc. For example if you had a good amount of free time and wanted to be hands on then you could get involved in finding your own deal, alternatively if you didn't have much free time then you could opt for a more hands off approach and use a property sourcer; RMP Property typically have deals around your investment level.

 

The number one comment from investors is they wish they started earlier, however given your age, time is on your side.  I would therefore not rush into anything (to an extent as you need to take action at some point) and use this time to get a good understanding of the different options out there. The Property Podcast would be a good place to start. Their latest podcast for example discusses how much you need to invest which might be quite applicable here and there are many other podcasts in their archive which will be very helpful.

 

The amount you have available to invest will determine your options. For example purchasing a property in the south would be challenging however something up north is much more viable. Or perhaps you could save up some more for your own place and then let out some of the rooms.

 

Regards,

 

Carl

Link to post

Ton of people could tell you to do this or that.

 

Educate yourself.

 

Take time to learn about property.  Spend next few months education yourself on different stategies. 

 

You don't have to rush. Money you have will still be there in few months from now. You don't have to invest tomorrow.

Link to post

In addition to books and podcasts, you could try subscribing to YPN (Your Property Network) magazine which generally packed with case studies using different strategies and articles covering many different topics.

 

Also there are lots of training courses available. Be careful of the one day introduction sessions which turn out to be a sales pitch for larger and more expensive courses. Don't get me wrong, there is a lot of good content out there, just do your due diligence. I recently took part in an online training course run by Richard Brown at the Property Voice (www.thepropertyvoice.net). For £200 you get access to about 8 live webinar sessions covering various aspects of property investing and this also includes analysis of your strategy or help determining one. I would recommend 

 

Finally you could see what networking events are around your area. There is a good listing of networking events in the back of every YPN magazine. Some popular events are PIN and PPN which are hosted across the country.

Link to post

Hi Lauren,

 

 

Just to reiterate what others have said, the best thing to do is put some time into research first. I spent 6 months reading books, watching podcasts, visiting forums and going to networking events before taking the plunge. The first book I read  was "Property Investment for Beginners: A Property Geek guide" which personally I found was a great introduction and allowed me to think more on what strategies I wanted to pursue.

 

I have also recently subscribed to YPN magazine which has some really interesting case studies.

 

I would also be wary of spending large amounts of money on training although I have met a number of people who have seemed to do that and are successful in property. I haven't gone down this route but I suspect having a mentor is a great way of keeping you motivated and avoiding analysis paralysis. That does come at a cost though.

 

All the best.

Jon. 

.jpg

The Bristol meetup takes place on the first Thursday of every month, find out more here

Link to post

I'll second the book "Property investment for beginners".

I am a rookie too and I can't tell you how much you can learn from the books!

Just keep on reading!

There are some great training courses on this website too that are well worth doing.

 

Education is key!

Link to post

This is copied and pasted from another reply of mine, but hopefully it should provide some help:

 

I purchased my first two this year; I offer the following experienced based advice:

 

-          Purchase near your home

Not sure where you’re based so this may or may not be feasible, but if you live near your investment it makes viewings, refurbs and maintenance much, much easier.

 

-          Have a contingency fund in place*
I recommend at least three months mortgage payments + agency fees for inventory and new tenant signup/find + new boiler (around £2.5k). do not make the mistake of thinking you’ll build this up when the tenant is in place, you MUST have this set aside before you purchase the property.

 

-          Consider the following costs

Voids (allow a month), new tenancy signup fees (usually around a months rent), Gas safety checks (£80), Electrical safety checks (£170 typically every five years), boiler servicing (£80), 10% maintenance, 10% on-going management, landlord insurance (around £190 per property), mortgage interest.

 

-          How old is your boiler?

This is likely to be the biggest on-going cost, factor this in before purchasing.

 

-          How long will it take to let?

Consider it may take multiple months to refurb and let out, all whilst you’re paying your mortgage ect, factor this in.

 

-          Buy primarily for income not capital growth
Aim for at least £200 per month profit.

 

First steps? Head down to a local property networking meet and get an idea of property prices/rents in your area, then book some viewings.

 

Hope this helps (and I haven’t put you off!),

 

Sam

Aged 20-30? Learn how to grow your wealth at Money Nest.

Link to post

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...