5 Questions You Should Ask Yourself Before Investing in a Property

Property investment can be highly rewarding, both in regards to adding diversity to your portfolio and, of course, helping you make a good profit. However, this is not without risks. After all, there are several internal and external factors to keep in mind when you decide to begin investing, such as your knowledge about the market or the current state of the economy.

For this reason, it’s vital that you first make sure investing in properties is the right choice for you:

Am I Ready to Make the Investment?

While this may seem like a simple question, the truth is that investing in real estate, whether it’s in commercial, industrial or residential properties, is not for everyone.

Despite the fact that it’s a misconception to think that you need to have a large budget to be able to start investing, you still need to have your finances in order. If you’re unsure if this is the case or you want to be certain that investing is for you, then it’s best to first talk to a financial adviser about it.

What Kind of Investment Am I Looking For?

Real estate is not a small or simple field, as it can be influenced by many different factors and includes small homes, large apartment complexes, industrial properties, commercial rentals and much more. It’s important to ask yourself, then, which type of investment is better for you, especially when it comes to your budget.

Many first-time investors start by purchasing properties and then ‘flipping’ them for profit, or even buying just one rental property to begin with, which can help them get into the market.

Do I Have Competition?

Learning about the market also means making sure that you can get enough returns. While this can be impacted by unforeseen circumstances, you still need to plan ahead to know exactly what to expect when it comes to certain factors, such as the number of investors in that market, which properties are occupied, and whether there are a lot of rentals in the area or not. You want to minimise the competition, as it can reduce your profit in the long run.

 

What Risks Can I Take?

Another way to narrow down your choices is to consider the risks you can actually take. While all property investments have some form of risk associated with them, you still need to know your limit – knowledge of the market is crucial for this, as is knowing the area and not making any decisions without thoroughly researching every possible outcome.

 

Do I Have an Exit Strategy?

Knowing when and where to start is vital when it comes to property investment, but so is having the end in mind. This is because you need to be sure of what you want to do with a property before you purchase it, or you run the risk of making a bad investment. This means that being 100% sure of what you want to accomplish, before you even start, is indispensable for ensuring that you get exactly what you want.

Whether you’re new to property investment or you already have a few years of experience in the field, you should still ensure that you’re fully prepared and committed to ‘invest in investment’ in terms of money and time. You’ll never find any investment that is completely free of risks, but you can certainly take precautions and plan in detail, so that you have all possible factors and eventualities covered!

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
Share on pinterest
Share on email

CONTACT US

LATEST DEALS

Don’t miss out on our opportunities

Advanced Search

Try Selecting Multiple Options to search

Recent Articles:

22 Lockdown Deals Done as opportunistic enquiries surge

In the 3 months since the nationwide lockdown commenced in late March, the Prideview team has dealt with an unexpected …

Read More

Covid-19 debate: Buy now or wait til September?

For anyone looking for investment opportunities, this is the key question of the moment. Listen to these highlights of a …

Read More

Infographic: Pro Tips for Landlords Facing Coronavirus

If you found this useful, check out our full analysis of these issues in our Complete Guide for Landlords Facing …

Read More

Current Opportunities

In Auction
£ 2,350,000

Development Site with Planning, Leicester

510 Melton Road, Leicester, Leicestershire, LE4 7SP
Current Opportunity
Call for price

McColl’s & Well Pharmacy, Manchester

183/185 Victoria Avenue, Higher Blackley, Lancashire, M9 0RB
In Auction
£ 375,000

Vacant Shop & Flat, Feltham, Greater London

98 Harlington Road West, Feltham, Middlesex, TW14 0JJ
Call for price

Gym & Cafe, Liverpool

Lower Ground Floor, Silkhouse Court, 7 – 17 Tithebarn Street, Liverpoool, L2 2DP
Call for price

Heron Foods, Crewe

Heron Foods, site of former Merlin PH, Bradfield Road, Leighton Crewe CW1 3RH
Call for price

Co-op Food, Loughborough

Co-Op KnightThorpe Road, Loughborough, Leicestershire, LE11 4JX
Current Opportunity
£ 1,000,000

Vacant Restaurant & 3 Flats with Development Potential, Newington

53-57 High Street, Newington, Kent, ME9 7JJ

Vacant Former Post Office, Pinner, Greater London

Ground Floor Unit, 67 Bridge Street, Pinner, HA5 3JB
£ 50,000

Vacant (To Let) Retail Unit, Doncaster

Formerly The Factory Shop, Scrooby Road, Harworth, Doncaster, Nottinghamshire, DN11 8JW
Call for price

Sainsbury’s, Pharmacy & Restaurant, Wootton

Berryfields Local Centre, Fields Road, Wootton, Bedfordshire, MK43 9FZ

The Home of the Blue-Chip Investor

Click the logos below to see relevant investment properties