Top Mistakes to Avoid in Property Investment from Successful Investors

Investing in property can be a great way to make money, but it’s important to watch out for common mistakes that could cost you dearly.

Our property trainers have decades of experience in investing in residential properties. Their experiences consist of great highs but also notable learning opportunities.

Here are the top six mistakes to avoid when investing in property.

Is owning property a good investment?

Property investment can be an excellent way to make money but, like any other kind of investment, it carries its own unique risks.

Generally speaking, property investments tend to appreciate in value over time and provide investors with steady rental income.

It’s important for potential investors to do their homework before investing in property and be aware of the common mistakes that are often made by inexperienced investors.

What are the property investment mistakes to avoid?

1. Not Doing Your Research

The first mistake to avoid when investing in property is not doing your research. Before you invest, it’s important to educate yourself on the market and understand the different types of properties that are available. 

Read up on the trends in your area so you know which properties will appreciate or depreciate in value over time. 

Additionally, if you can find out what other investors are doing and what kind of profits they’re making, you’ll have a better understanding of how well a particular investment might perform.

2. Not Being Patient

Another mistake novice investors make is not being patient with their investments. 

Property investments take time to appreciate in value, so it’s important to be patient and wait for the right time to sell. 

Trying to rush an investment could lead to losses, so make sure you’re prepared to hold onto a property for several years before expecting a return on your investment.

3. Not Setting Realistic Goals

It’s essential to set realistic goals when investing in property. Many new investors get caught up in dreams of making huge profits overnight, but it’s important to remember that most investments take years to mature and even longer if you don’t have the right strategy. 

Make sure that your expectations are reasonable so that you don’t become disappointed when your investment doesn’t perform as expected.

4. Investing with Borrowed Money

Using borrowed money to invest in property can be a risky move if using finance from unreliable sources. By utilising mortgages you can gain a loan of many times your annual income, making it stronger investment than other asset classes. There are also other ways to borrow money, such as using joint ventures, that mean you need little upfront capital yourself.

It is important that due diligence is carried out before borrowing money. There is a risk with certain strategies that other people’s side of the bargain may not be upheld. Follow guidance from Touchstone Education to find out how to attract the right investment.

5. Ignoring Your Finances

Before investing in property, it’s important to take stock of your finances and make sure that they’re in order. 

You should consider all the costs associated with investing in property such as mortgage payments, taxes and fees, insurance premiums, maintenance costs etc., before committing to an investment. This will help you to avoid getting into financial difficulty down the track.

6. Not Getting Professional Advice

Finally, it’s important to remember that investing in property can be a complex process and it’s wise to get professional advice from a qualified real estate agent or lawyer before committing to any investment.

They will be able to provide you with valuable insights into the current market and guide you through the legal aspects of buying and selling property so that you can make an informed decision.

Touchstone Education provides a range of helpful contacts in the property trade so that investors can make the most of opportunities available.

What should property investors do to avoid mistakes?

1. Educate yourself: It’s important to do your research and read up on the market before investing in property. Knowing what type of properties are available and their trends will help you make an informed decision about an investment.
2. Be patient: Property investments take time to appreciate in value, so it’s important to be patient with your investments and not rush them.
3. Set realistic goals: Don’t get caught up in dreams of making huge profits overnight – set realistic expectations so that you don’t become disappointed if things don’t go as expected.
4. Avoid rookie borrowing mistakes: If possible, try and avoid borrowing money from unreliable sources and wait until you have carried out the due diligence on other parties involved in the joint ventures..
5. Assess your finances: Before investing in property, assess your current financial situation and make sure that you’re prepared for any costs associated with the investment such as mortgage payments, taxes etc.

What should property investors do next?

The secret to successful property investing is education, network and action. By following the guidance of experienced investors you can receive the knowledge that you need to ensure success, based on proven results.

Property investments carry a large amount of risk and can be financially and emotionally draining. As such, it’s important for investors to seek advice from experienced professionals before making any decisions. 

An experienced property professional will be able to provide valuable insight into the current market conditions and local area, as well as help you make informed decisions about your potential investments.

Additionally, they can help identify property investment opportunities that may have been overlooked by other investors. Ultimately, an experienced investor or financial advisor can be an invaluable asset in helping you reach your goals with property investing.

Touchstone Education founder Paul Smith said, “Property investing is accessible to all, with a wide range of avenues available. However, it is imperative that you follow advice of those that have been there and done it, to avoid common property investing mistakes.”

Wealth Through Property is the UK’s leading 2-day property investment course. It is designed to provide you with specialist knowledge of proven investor 

strategies. Learn how to get started and build your property portfolio and gain real-world advice.

Alternatively, make the first steps on your property journey, claim your free Wealth Through Property e-book.

To find out more information about the property investment courses we offer call us on 01302 897131 or email office@touchstoneeducation.li.