So You Want To Be Property Investor?

Property-investor-adviceOkay have you thought this through? I am guessing that you are tempted by all the rewards that a property investor enjoys like positive cash flow, passive income and happy tenants.

My guess is that people choose to become landlords because they want to create a business that will generate passive income.

As I said to one first-time investor recently, property investment is a tough business.

However for smart savvy investors who take the time to plan their investment, owning a cash flow positive property can be extremely rewarding. You may get the feeling that you have risen to that level of society that is no longer reliant on a pay check each month.

That feeling of course is linked to those three words, positive cash flow.

There is no doubt that property markets have seen a seismic shift. Homeownership for many people is far from guaranteed and they are having to accept the new reality that we may be heading for the lowest homeownership rates since the 1960′s.

For example those landlords owning UK property have never had it so good. Yields are rising because even though people have the means to buy, they can’t because banks are cautious and set unrealistic demands. The same applies to those wanting to buy USA property

So as a first-time property investor I bet you have the same picture in your imagination as I did when I started out…

A nice 3-bedroom semi , on a quiet residential street.  Inside is your perfect tenant. The husband and wife working hard to support their 2.5 children.

They always pay their rent on time and welcome you with open arms on the rare occasion you might need to visit your property (there is very little maintenance to be done).  The best bit is they are not the least bit concerned when you increase their rent.

Are you this investor?  I was, and I’m guessing that when you started out you had this same image in mind.

So, what does it take to be a successful property investor?

Someone called me up and asked this yesterday when he read our blog about all the opportunities there are to invest in Turkey, US and UK property.

So I told him, first of all forget that nice family, forget that nice quiet street, they don’t exist. Here is what you should be focused on as an investor…

First of all you need cash. Cash to cover the deposit, cash to cover the maintenance and cash to cover voids.

Or to put it another way you need what is often referred to as rainy day money.

If your rent is covering your costs then that is great, you are well on the way to becoming a successful property investor  However be prepared that in the real world that nice family will not be happy tenants if you are unable to repair the gas boiler.

As hard as it might sound, you need to think like a business person. You need to prepare yourself for the worst even if it never happens. Keep yourself up to speed with tenancy laws, know your rights when it comes to evicting tenants, all countries are not the same when it comes to tenant rights.

If your nice tenant family get into trouble, are you the kind of person who can evict them? If you run a business, you would need to make similarly tough decisions about an unproductive employee.

If you are tough enough to make these decisions, have enough in the bank or someone else’s to cover any problems and you invest in property that pays for itself then you are well on your way to enjoying all those rewards of being a successful property investor.

Are you a property investor? Please tell us your experiences below:


Kind regards

Brett Tudor
Property Expert

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Categories: First Time Investor / Property Invest


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