Contributed post
It feels like every other TV channel has some sort of aspirational property show demonstrating the ease at which anyone can try their hand at becoming a landlord.
Everyday people with full time jobs seemingly stroll into their banks, have a meeting with the branch manager, secure finance and begin to build their property empires without even a sniff of a struggle.
In the real world, making a name for yourself within the bricks and mortar industry and actually turning a profit from your investment can be much more difficult.
While many people are keen to see the money in their savings account work more aggressively for them and they purchase a little rental pad to top up their retirement fund, committing yourself to a longer and more fruitful relationship with property can be harder to achieve.
Responsibilities
There will come a time when you need to consider what you want to do with your working life. If you still want to continue with your high flying corporate career, working ten hour days and enjoying a steady wage, a career within property might not be for you.
As a property mogul, you will need to be a project manager, a finance bod, the HR guru and salesperson, not to mention getting stuck in a doing a spot of plastering or gloss work. If you are keen to own a handful of apartments to rent out to young professionals, you will need to consider whether you want a hands on landlord role or whether you will pay a management agency to take care of the day to day maintenance of your pads. Taking on the landlord responsibilities can be overwhelming, but may save you money in the long run.
Property Types
While residential property might be the obvious choice of investment, there are other avenues that you may wish to explore. Real Estate Investment Trusts allow you to pump your money into commercial investments such as offices, factories, and warehouses. A financial expert will consider the returns you wish to make and invest your money accordingly. While you won’t have so much control or be as hands on, this could be a lucrative way of turning a profit.
Budget
As with any investment, you don’t want to be stretching yourself too far. You must always remain a responsible borrower and manage any loans you may end up securing. Credit is a wonderful thing if used correctly, and it can help you fulfil your property empire dreams. However, you must only ever borrow what you can afford to repay. When you spy a property that you like the look of, make sure the mortgage repayment and potential rental yield create a strong financial picture. Buy at the right price and invest in an area that forecasts long term financial growth.
If you fancy trying your hand at investing in property, start small and build up a portfolio slowly over a number of years. Becming a property mogul isn’t for everyone; however, the financial rewards can be great.