Pay as you grow

Like any form of investment, investing in property takes a combination of skills and personality traits. Being armed with the correct information can significantly improve your chances of getting the most out of your investment.

Attitude is key
The biggest barrier to success is the fear of failure. Have the determination, confidence and self-belief to take the plunge – the power of a ‘can do’ attitude must not be underestimated.

Develop the right entrepreneurial skills
The reason most successful entrepreneurs and investors succeed is because they take measured and calculated risks, and are ready to analyse and grasp opportunities.  

Focus on the positives
Try to look at a setback as an opportunity rather than a disaster, and be prepared to learn from mistakes by analysing what did and didn’t work rather than dwelling on failure.

Have targets to aim for
Make sure you have clearly defined goals, making an effective and realistic plan will help reach those goals.

Be pragmatic
Novice investors often have an unrealistic level of expectation of rental values and capital growth. The UK property market typically doubles in value every seven years to ten years, so it’s important to ride the medium to long term cycle. 

Research the risk exposure
Consider national, economic and political factors, and any local or national rules and regulations. If you’re looking at an emerging overseas market ensure there is evidence of stable business investment and that there is an exit route should you decide to sell. If most of the world’s major banks won’t take the risk of lending mortgages in a country you should weigh up if you are willing to take the risk. The Instant Access Properties website has some useful information on managing risk and due diligence.

Play the long-term game
Experienced investors view their investment as medium to long-term. This will protect you from short-term price fluctuations, and off-plan property speculators sometimes cause a dip in property prices when they sell at less than market value as soon as a development is completed. They are happy to take a smaller profit than could be realised in the future to avoid letting the property at a time when a number of other units are also coming on to the rental market.

Beware the pitfalls of buying off-plan
Conduct due diligence to examine the developers’ credentials, including previous schemes, present financial position and appropriate insurances and planning permissions. Ensure they have the necessary indemnity insurance in place should they become bankrupt.

Look at your geographic exposure
Avoid having all your properties in the same city, town or even country. When investing overseas look at tourism and letting opportunities. Research the country and understand the buying process. Always perform due diligence on the local area, conduct a survey of the property and investigate all mortgage options. Hire a good independent lawyer to draw up a local will and insure the property for the use it is intended.

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