Investing in property is not easy; there are hundreds of ramifications to it. But for the seasoned and the experienced, it’s all in a day’s work. Value of property depends on many factors, not necessary linked to property itself. A war in a remote country can make property prices plunge at the other end of the globe. A natural disaster such as an earthquake can lower prices elsewhere. And even election of an American President or Britain leaving the European Union can affect property prices favourably or adversely. Hence any property investor must have an ear to the ground and take into consideration all such aspects to be successful.
However, any property investor has to follow a definite set of rules to be in a truly winning situation.
Invest low – This is of course the cardinal rule in all speculative ventures. Remember, playing the property market game is on top of this list. Invest when property markets are low and sluggish and build on that. When you ultimately decide to sell, you’ll be in a winning position. However, knowing exactly when the prices have hit a trough and you have to buy is difficult. That’s when your experience and business acumen will be severely tested. Forget about property prices for a while, keep your sights broadly on events around you and try to understand what might impact property prices.
Have patience – There is always a tendency in human nature to make a quick profit. After you’ve purchased property at rock bottom prices, do not sell when prices are on the upswing. Have patience and wait for the trend to run out of steam. How do you know that this level is approaching? The rate of increase will be high initially but will ultimately level off. You have to keenly follow the pattern and hold on to your investment even against your most fervent desire to sell.
Consult the experts – Even though you might have acquired a certain degree of expertise in this field, it is always advisable to consult the professionals to guide you. Before arriving at a decision take a commercial property lawyer into confidence. There are a host of things to be looked into – laws of the land, documentation, stamp duties and compliance with other legal and statutory requirements. Any error at this stage can turn problematic at a later stage.
Specialise in a niche – If people have to know you and approach you as a successful property investor and dealer, you should cater to a niche. Generalisation does not pay in the long run in this field. If you specialise in say up market properties, others looking for the same will approach you. Other examples are residential or commercial property, industrial land or farmland and any other type of property that you might think of. True, you will get limited clientele but then you can keep a higher margin as the price of having exclusive and top of the line properties in your portfolio.
These are some of the tips you can use to be a successful property investor. Other ways and means to optimise your business rests solely on your business wisdom.