Over the years we have been asked one question more than any other: How do I get started in property investing?
So, with this in mind, we decided to create the Sourced Beginners Guide to Property Investing. This blog will give you a brief overview of ‘how to get started’. We have tried to focus on the core fundamentals, so you have a good base to start from. So, why property investing? Why do so many investors want to get involved?
So, why property? People often have the desire to be financially free, or even better have a steady added income stream on-top of their salary. Everyone is different however, and another big draw is that you can invest in property whilst still being in full time employment, who wouldn’t want a steady added income stream on-top of their salary?
Property Investing offers more benefits, such as:
- Capital Appreciation
Your asset gaining value as time goes by
Use the equity in your property to buy another property or release funds
- Cash Flow
Monthly cash flow (added income stream)
Full-time or part-time
Let’s face it, what are the alternatives? You could have your money sat in your bank earning you barely a penny. Maybe, you are brave enough to buy bonds, stocks, shares? We have all heard the old saying ‘safe as houses’. The British in particular, have always had a love affair with.
If you are reading this, we will assume that you are a beginner and maybe throwing around the idea of investing in property.
We have heard about all the mistakes people make when investing in property and can safely say that around 95% of them are avoidable. Most investors used to learn as they go… You, mess up, you know not to do x, y & z again, you improve, you get better at it.
As a beginner, we will assume you have a basic understanding and knowledge of how the property market works, how the rental market works etc. What we at ‘Sourced’ always say to first time investors is knowledge is power, the more well informed you are, the easier it will be and the less mistakes you will make.
Here’s some very informative listening material we’d recommend.
- Sourced Property Podcast
- The Property Hub Podcast
- This Week in Property Podcast
- Investing in Property Podcast
- Tim Ferris Podcast (not about property, but excellent for mind-set, etc)
Sourced is a multi-faceted company and as well as offering many services to sellers, buyers & investors we also offer the UK’s most unique property franchise available today.
Your Personal Investment War-Plan
First things first. What do you want to achieve? What is your motivation? Is property going to be your pension pot for when you retire?
Is it going to replace your salary to enable you to become financially free, give up the day job, and sit drinking cocktails all day long on some, sun-drenched island in the Med? Or is it just to have your pounds work harder than they will, sat in a savings account waiting for a rainy day? We advise beginners to make an ‘Investment War-Plan’. Yes it sounds a little over the top, but you need to be methodical, well researched and have a game plan.
Your War-Plan Should Consist of:
- What is your end goal?
- Pick your area or areas of interest
- Understand the area and local market you have chosen e.g. supply & demand etc
- If you haven’t already crunched the numbers, what is your budget? What are your finance options? …you will need to add a second part to your plan later. This will enable you to put the plan into action!
How Sourced Can Help You
At Sourced we offer a completely unique property franchise opportunity. We are the UK’s only agent that not only caters to investors around the UK and abroad, but we train our franchisee’s how to source property and build their very own property portfolio too.
Do you want to know more about how you can join Sourced and grow your own property business with our support?
Download our prospectus now to find out more.