As the father of Serena and Venus Williams is famous for saying “If you fail to plan, you plan to fail.” This is true for real estate investing. Having a plan is crucial to the success and growth of your property portfolio.
Understanding your goals and how you will get there will make your real estate investments more likely to work in your favour and help you build up your wealth.
There are a number of key things to consider before investing
The amount of leverage one is entitled to is dependent on your nationality, income, age and more. Speaking to a mortgage advisor is great to get the ball rolling and figure out how much you will be able to borrow. At CI-property we can put you in contact with a mortgage broker in order to get you the best mortgage with low-interest rates.
2. Buying as a private landlord or through a limited company structure.
Buying through a limited company can be a great way to reduce the amount of taxes you have to pay on your investment. Limited company structures have a number of advantages especially if you are planning on building up a property portfolio. Check out this article to have more information and see whether it is worth you setting up a limited company to buy your property.
3. Buying off-plan or ready built
Off-plan properties are properties which are still not completed. Buying off-plan can give you greater price growth as you tend to get premium properties at a lower price. The process for buying off-plan normally means you put 20% down and the rest on completion. This can give investors more time to get the equity necessary to buy the rest of the property. But it does mean that you have to wait until the property is completed before receiving a rental income. Speak to one of our consultants for expert advice on whether it would suit you more to buy off-plan or receive rental income from the get-go.
The location of your property can be very influential in the success and returns you will make. Choosing an area with good transport links, and access to a strong job market is going to make it easier for you to find tenants and sell the property.