Although property investment strategies can greatly vary when it comes to the smaller details, generally, the sound fundamentals remain constant. A person flying by the seat of their pants in the property investment world will likely lose those pants as well as the proverbial shirt off their back, as you need to be armed with research and proper strategy in order to be successful. Property investment isn’t for the faint of heart, get rich quick seekers, or anyone else not willing to put in the proper effort and time necessary to secure long term equity growth and cash flow.
The Top 5 Best Property Investment Tips
- Location is Nearly Everything – When it comes to sound property investments most people will quickly realize that location is everything. Location drives demand which in turn drives property equity growth, rent prices, sale prices, and nearly every other key component of a sound property. The location of a property indicates how solid of an investment it is.
- Capital Growth is Paramount – Any successful property investor knows that capital growth is far more important than cash flow. What that means is that asset growth and asset value are far more important to long term success than what a real estate portfolio is generating in monthly income.
- Never Invest With Emotion – The moment that emotion comes on to the investment property scene things usually take a turn for the worst. Professional investors buy properties with their brains, not with their hearts. A person buying an investment property solely because it reminds them of the house they grew up in is probably going to end up losing a lot of money.
- Don’t Speculate – Only a tiny percentage of property investors become successful through speculative investing. Investing in a property because it is widely expected to be the next big thing only rarely pays off as expected. Successful investors buy properties that they know will appreciate, with no speculative feeling involved.
- Hold It For The Long Term – The safest way to invest in real estate is to purchase an affordable property and then hold it for as long as possible. In other words, let natural and rock-solid appreciation do the heavy lifting. The long real estate game has always delivered over the short real estate game.