Have you ever wanted to invest in property but been unsure of the right steps? Landlord property management is a great way to build wealth and achieve financial freedom, but it can be complicated. That's why we've created this blog post about the truth about property investing! We'll discuss how you can get started with Property Store, our CRM for Property Investing, as well as some of the myths surrounding property investment.
Common Myths
So what are the common myths surrounding the mysterious world of property investment? We hear them day in and day out, so we've decided to debunk a few of our favourite ones below!
Myth #1: All property investors are wealthy
The first myth is that you need deep pockets before you can get started with investment. It's true that it might take some time for your portfolio to mature into anything substantial, but the reality is most successful property investors are in their 20s or 30s.
But the truth is, these myths can make it difficult for people who want to invest but don't have much money saved up. But if you're willing to put your time and effort into saving, then now's the perfect time because with the right education and research you can find tonnes of low interest rates on mortgages and lending options meaning it's cheaper than ever before! So what are you waiting for?
most successful property investors are in their 20s or 30s.
Myth #2: You can only get good deals if you pay cash
Now yes, it's true that when vendors are desperate for a sale they'll take any offer on the table - but this isn't how property investing works in general. If anything, most investors will tell you to avoid paying all-cash because doing so locks up a lot of your capital and can make it hard to get ahead when you've got expenses like mortgage repayments.
However, there are lots of ways to stack a deal that don't involve cash only transactions. One such way is to use a bridging loan.
Think of a bridge as a short term mortgage. It allows you to buy fast - usually within 4 weeks - and you can leverage a deposit like a traditional mortgage. The only thing to be super wary of, are the interest rates. These are usually MUCH higher than traditional lending. So these need to be weighed up when you stack your deal.
Myth #3: Property investing takes years to start seeing returns
This is another myth that we hear pretty often. The truth is, Landlord property management is a long-term game and it can take many years before you start seeing returns on your investment - but the good news is, once those investments are in place they're usually there to stay!
One way of reducing the time spent waiting for returns? Using higher cashflow property investing strategies such as SA (Serviced Accommodation) or HMO (House of Multiple Occupancy). These usually stand a higher entry cost and more risk, but they reduce the time taken to realise your investments.
Property Store is the UK's best Property CRM and has all of these tools built in to help you stack your deals for more profitable returns!
Myth #4: You cant refinance within 6 months
Before we go any further, it's important to note that the UK has some of the strictest lending rules in Europe. This makes refinance an incredibly difficult task - but not impossible!
We often hear that you can't refinance within 6 months due to the UK's strict AML (Anti Money Laundering) regulations. The truth about property investing is that this is simply not true!
It is accurate that under traditional lending this is usually not possible. However, there are many specialist lenders that will look at circumstances in which you wish to remortgage in as little as 1 month after purchase! Just make sure that you have a great mortgage broker with access to the FULL market.
Myth #5: Planning is easy
Property investing can be a daunting task and planning takes both significant research, expertise and an intimate understanding of how it works - yet many people seem to think they don't need any help!
The truth about property investing is that you will save yourself SO much stress if you work with experts in this area. We ALWAYS use a planning consultant to support us with our applications as they have an intimate understand of the regulations and dramatically increase your chances of planning approval.
Myth #6: You can't get deals through agents anymore
We hear this myth a lot - and it's not entirely true. Yes, over the past few years there have been significant changes in how properties are marketing and deals secured; making agents a less effective route to find good deals.
However, that doesn't mean you should ignore them!
The property market has seen a significant rise in recent times, meaning that the average property is now a lot more expensive. This makes the market super competitive and to compensate for this, agents are quoting higher prices to secure their clients.
So you'd think Direct to Vendor is the only way right?
Well, not quite. It's true agents ARE in demand with first time buyers however they do also have access to bigger portfolios and are able to source some great discount properties IF you have a good relationship with them.
So stick with your local agents for property management through the good times and the bad, and you'll be sure to be at the top of their list when a cracking deal comes through.
Summary
Property investing is a great way to generate income and build wealth but there are many myths surrounding the industry. By busting some of these, we hope that you will make less mistakes as we did. Also, make sure to navigate the investment process with assistance from experts in this field.
How can Property Store help?
Property Store is a Property Management CRM Software designed by property investors for property investors. With our software solution, you'll be able to discern good deals from the thousands of property listings across the UK property market.
Our investment calculator will show you exactly how little liquidity you need to purchase a property and how much profit you'll gain from the deal. In addition, our powerful task management feature will help you plan and prioritize your projects. Planning to take a high interest bridging loan? plot the numbers in our calculator to make sure that interest repayments won't eat up your profits. Since our users include deal sourcers and other property investors, our built in networking system will allow you to communicate with these users that may offer you great deals!
Want a free trial of Property Store? Sign up now and get your first week free!
Not convinced yet? Click here to attend our free webinar where we will show you how Property Store can support you in your property investing business.
Want to see more? Head over to our features page where we recorded a live demo that you can watch to see Property Store in action.
Got a question? Check out our Frequently Asked Questions Page for answers to common concerns or you can contact us here.
Looking for more tips? Check out our blog on things we knew wished we knew when starting out in property investment.
Comments