How to Build a Property Investment Business

There are plenty of ways to make money these days, but if you enjoy watching property makeover programmes and are good at dealing with people from all walks of like, property investment with a view to letting out your acquisitions could be a smart move.

The property market has largely recovered from the global recession that saw house prices take a massive tumble and giant financial institutions go to the wall. Prices are rising and in many areas demand far outstrips supply. There is also a big market for rental accommodation, so if you invest in property, you can enjoy significant capital growth plus a regular monthly income from tenants. It really is a win-win situation, whether you look at a condo in Montreal or a penthouse apartment in London. Either way, you can’t fail to make a profit if you stay in for the long haul. So if this sounds like a fantastic idea, here are a few tips to make sure you don’t lose all your money.

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Sort Out Your Finances

There is little point in starting a property investment business if you don’t have some cash set aside. You don’t necessarily need to buy properties with cash, but you will need to put down a reasonable deposit in order to obtain a buy to let mortgage. Lenders are a bit more relaxed about income and affordability these days, but make sure your income is sustainable and you can prove exactly what you have coming in or the number of lenders willing to give you a finance package will be small.

Find the Right Properties

Think about what type of tenant you are targeting and look at properties accordingly. For example, if you want to let to upmarket professionals, it is a good idea to invest in city centre apartments or larger family homes in more affluent areas. Anything less will not be attractive to this type of tenant and you will end up struggling to find takers.

Manage the Admin Carefully

Property investment is no different to any other business. You have to be ruthlessly organised at all times and manage your admin very carefully. If you don’t stay on top of the paperwork, you are likely to forget to do important things, like fill in tax returns or pay bills. And, more importantly, you might not realise that tenants are behind on their rental payments.

Understand Your Legal Obligations

Managing property and tenants is a bit of a minefield at times. There is a lot of regulation in the sector and it pays to be up to date on your legal obligations. Health and safety is a massive issue when you are letting property to tenants. A failure to meet your obligations could lead to a fine, jail, or the death of an innocent person. So keep on top of things at all times.

Property investment is very lucrative, but only if you manage it well. But if you are organised and not too risk averse, it is possible to be extremely successful and make a load of money at the same time.