Property Investment Strategies

So what property investment strategies or strategy should you go for?

It is all very well saying it is easy to make money from property, but like anything you must know what you are doing. And as we are all different with different goals in life, we will all have different property investment strategies when it comes to investing. Differing factors will include how much money you have initially to invest, what financial commitments you have, what age you are, whether you are looking to secure a pension, or give up work completely.

At the outset, the 3 main things you must ask yourself are –

How much risk are you willing to take?

What time scale you are working to?

How much time you will be able to give your property portfolio?

This will influence what type of property you buy, where you buy, how many you buy.

For example when I started seriously I had built up £80k which I wanted to spread across as many different types of deals as I could, to spread the risk and increase the potential for good growth. I was able to spend 5-10 hours a week on researching deals and dealing with mortgage companies/lawyers/estate agents. My goal was to get to £200k capital as soon as possible, which would allow me to give up the day job.

Lets consider some of the other factors that may affect your property investment strategies.

Market Cycles

Like most investments, property markets are cyclical - that is, although the value of property goes up consistently over the long term, it tends to go up and down along the way.

When looking to invest, you must:

1. consider the various locations suitable for investment(and don’t limit yourself, check out Location, location, location - more on property investment strategies section for more!)

2. understand the market cycle and key investment factors of the various locations ie an ideal location may have perhaps recently emerged from a downward recession and be poised for strong growth due to increased investment, job creation, and be aware of interest rates in the currency that you will borrow, whether it is pounds sterling, euros, dollars etc

3. within these key locations, determine which property types have low supply and high demand

4. deal with only the most reputable companies when selecting individual properties ie lawyers, agents, finders

5. ensure you are paying a fair price. I always phone around a few estate agents in the area, before buying, say I am a prospective buyer in the area, and ask how much I should expect to pay for the type of property I am after. This can only take an hour but either confirms whether it is a good deal, or helps you walk away.

Big Tip

I know what I was like when was just starting out, and felt the money I had was burning a hole in my pocket and was desperate to buy, but it is important you are disciplined and able to walk away from a deal if does not seem right. I walk away from far, far more deals than I buy! There will be plenty more deals, and it is worth waiting for the right one! This is a key point to remember when looking at your property investment strategies.

Location

But before you get in a panic about never knowing where to buy, what that means is, buying an investment property in one location that is poised for significant capital growth, and as that property grows in value, using the equity in that first property (either by re-mortgaging or selling) to purchase additional property - which would probably be in a different location. Over time, you can build a diverse property portfolio, which should protect you from local or even national cycles - so some diversity can be required in your property investment strategies.

If as a new investor that sounds fairly difficult, or as my mate said he “wouldn’t know where to start”, there is help in the form of property courses, forums on the net, and professional property finders. I have used all of these to help me, and will discuss these further.

Recommended Property Investment Courses

The first is provided by email by a guy, who has become a very good friend of mine called Parmdeep Vadesha and is entitled, “How to dramatically grow your property portfolio by finding and buying bargain properties from desperate sellers”.

This gives some excellent tips, and comes in 6 parts, with each part emailed to your inbox every 3 days. I found this a fantastic help when starting out, and still use some of the advice regularly. I would recommend signing up for it, and printing out each part, as is excellent for reference.

Parmdeep discusses what makes a motivated seller – a compelling reason to sell, and a time limit. He also starts by saying that your success in the property world is dependent on 4 things,

1. The correct mindset

2. Knowing where to find bargain property

3. Assessing the quality of a deal

4. Negotiating a bargain deal

All excellent advice when starting out and planning your property investment strategies. You can register for this free course here at Parmdeep's free property course!

The second course I would recommend is of course ours! The feedback to this course has been so powerful and made the effort to put it together very worthwhile! If have not already signed up for our incredibly popular course on the "7 Fatal Mistakes to Avoid as a Property Investor" you can do so now, by clicking on the box below - this will give you an excellent start in forming your property investment strategies.

Also check out the rest of my website, and the deals website - with these deals often selling out within hours (we are the largest sourcers of high yielding deals in the UK and over 6000 investors receive our newsletters every week) - check out the details and sign up to this site as well.

Or by going to Check out my recommended deals!

Don't forget to sign up for our highly rated free 7 part course below to learn more on property investment strategies!

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