Starting and maintaining a healthy property portfolio is a dream that countless Americans have, but few actually have the courage to pursue. Yes, it’s a long road from here to those huge pay-outs you keep reading about, and there are all kinds of risks along the way. Having said that, if you want to learn how to swim, you’ve got to jump in the pool at some point! If you’re finally going to step onto the property ladder, here are some valuable tips to keep in mind…
Know Your Milestones
Before you invest a penny in your property portfolio, it’s essential to take some time to quantify just what it is you want to achieve through it. Do you want a more stable financial future and less reliance on your pension? Do you want a certain amount of passive income every year? Do you want to eventually sell all your properties and invest that money in something even more significant? For most of you, you’ll have a mix of goals including general growth and a stronger cash flow. Whatever you’re hoping to get out of your investments, make sure you quantify these into milestones and mark them on your calendar.
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While pretty much everyone can get on board with the idea of purchasing real estate at a low price and selling it for a higher one, if you’re not already taking an interest in current affairs, particularly the ones that could have an effect on supply and demand in the property market, you’re going to struggle. Political shifts, the state of the economy, and interest rates will all have a massive impact on the market, and understanding these impacts will be a big help in making the smartest possible financial decisions. We’re already seeing a lot of big changes on the horizon with Trump’s inauguration, and you may have heard various property investors talking about why we need to save the 1031 exchange. Keeping up with current events is part of the package when it comes to property investment, so start getting into a good rhythm for it now!
Forget About Proving Anything to Someone
One of the worst reasons you could get into any kind of investment is to prove yourself to someone. Unfortunately, this seems to be at the root of why a lot of middle-class people decide to launch themselves into the property market. Property investment is a serious business, and the only person you should worry about impressing is yourself. If you’re not sure about your motivations, take some time to really consider them. Forget all the party bragging rights and similar white noise. Instead, think about how driven you are to succeed in the market, and what you ultimately hope to achieve. There may be other methods which could gain similar returns, and be much better suited to you.
As you take your first, uncertain steps into the property market, be sure to keep these three pieces of advice in mind.