For many years now, the property market has been seen as a safe haven for investors. It isn’t as volatile as some of the other common investments can be, such as the stock market, so there is little chance of investors losing large chunks of their money. For this reason, many individuals decide to add property investments to help diversify their whole portfolio.
Even though it can be one of the simplest forms of investment to get your head around, the property market can still be extremely daunting for those who want to invest for the first time. But that shouldn’t put you off. Sure, there may be quite a steep learning curve ahead of you, but once you get to the top, you will be well armed with fantastic knowledge of this great investment opportunity. Here’s a quick idiot’s guide to the whole property investment market and how you can benefit from it.
Set Yourself A Goal
One way to make the most money from your property investments is to set yourself some goals. These will then help you stay focused and achieve what it is you set out to do. So, for starters, think about what you want from your investment. Do you want a rental property that provides you with an extra income each month? Perhaps you’d rather carry out a short-term renovation and sell the property on for some substantial capital gain. Once you’ve figured this out, make sure you set yourself a plan and stick to it.
Take Baby Steps
Generally speaking, it is always best to start off small when you are new to investing and to just begin with some baby steps. For instance, instead of buying a property yourself, you might want to invest in something like Fundrise. Are you asking yourself “what is fundrise?” Well, it’s just an investment fund that gives individuals the chance to invest in property for small investments.
You and all the other investors will pool your cash in the fund, and the fund manager will then invest this in some property on your behalf. It’s a hand-off solution, and can be a great introduction to the property market before you head off and buy your own.
Consider Overseas Investment
Once you have a bit of experience behind you, it could be wise to move into an overseas property market. This is often a useful strategy if your domestic property market isn’t doing so well. Just because that isn’t performing as well as expected, it doesn’t mean that other markets will be similarly struggling. There is a bit more that you will need to consider when buying overseas, such as the country’s political stability as well as the property market. Most investors also find that it is beneficial to invest heavily in holiday accommodation in popular tourist areas. The biggest investment hotspots currently include the likes of Berlin, Germany and Sofia, Bulgaria.
Are you tempted by the property market? You’ll be amazed how simple investing in this area is even with minimal knowledge and experience!