The idea of having a property portfolio might strike you as something that is only possible for the super rich. You may think that since property is so expensive, the business of making money from it is prohibitively exclusive. It is the sort of thing that you can only do if, like Donald Trump, you were gifted a ‘small loan’ of a million dollars, right? The incumbent president of the United States of America is an interesting example. Despite having every possible advantage in life, he has still had to declare bankruptcy six times. The property market can be tough sometimes but getting started is possible even if you do not have a wealthy father. Here are a few ways that you could make the property investment market work for you:
Firstly, it is a myth that you need to have hundreds of thousands of dollars lying around to get into the property market. If you have a stable, well-paying job, and your credit rating is good, it should be quite simple to get a loan. However, before you make the decision to take on a lot of debt, you should first be absolutely sure that you will still be able to support yourself as well as accommodate the expenses of buying another property. A simple way of doing this is by calculating your net worth: make a record of your assets and then subtract any debts that you have. If the number that you are left with is less than zero, you should probably consider waiting for a few years until you are better prepared to shoulder more debt. If you have everything under control, then you should still think carefully. The chance of your investment costing you more than you anticipated could leave you having to make cuts in the rest of your life, cuts which you may not want to make.
If you are not sure about exactly how prepared you may be, you should consider speaking to a financial advisor or a mortgage broker. They are experienced at quickly and concisely getting an idea of someone’s financial health and giving their diagnosis. In the event that your finances are in good shape, then you need to decide what sort of property it is in which you should invest. Do you want a family house that would attract a professional, perhaps more reliable clientele, or maybe something small in a more vibrant part of town where you could charge greater rent? Either way, it makes sense to think about hiring property managers. They can tell you how much rent to charge to ensure that you are competitive and people will want to rent for you. They can also help with finding tenants and dealing with all of the paperwork, which leaves you to look towards your next property.
The secret to property investment is that success is cumulative. Once you get your first property and rent it out, it will start paying for itself, which allows you to reinvest that money into a new addition to your portfolio. Pretty soon, you will be the property mogul you never thought you could be.