How much research is required before investing in property?

Interest rates in the UK are at an historic low, savings rates are abysmal and there is concern about the short to medium term direction of stock markets. As a consequence more and more people are now looking towards investing in property as a means of enhancing their retirement plans in the longer term. The Internet has been a godsend for many people allowing them to access information and data which was not previously available to the general public. However, how much research is required before you start investing in property?

Confidence is vital

When you bear in mind you will be dealing with large amounts of money, whether cash payments or mortgage arrangements, you need to have total confidence in the decisions you make. Many people use a simple checklist when looking at a particular properties or particular areas which keeps things very simple and takes away any emotion. However, the only way you can really gain any confidence in your decision-making process is to research, research and research again.

There are some experienced property investors who have a “gut feeling” about any potential purchase/sale but for the vast majority of investors it can be a long drawn out process. In many ways this extended process will ensure that you remain focused because if you are confident about any one transaction then you will see the process through to the end. If not, was the proposed transaction really for you?

Follow real real-life stories

There are very few successful business people in the world who do not have some form of exposure to the real estate market. Many of these successful property investors have been more than willing to wax lyrical about their experiences, how they started and their investment strategies. This is the type of research which many people often overlook but it is real life, it is very useful and very often the reader will relate to specific situations. In some cases you will need to take away the polished look and perfect feel of the route to successful property investment, but reading about the many situations you may find yourself in will allow you to take away valuable guidance.

Monitoring the markets

If you are targeting a particular markets such as for example the UK then you will probably be inclined just to read research on the UK property market. However, you will actually gain tremendous knowledge if you also research overseas markets where very often similar traits will emerge in the UK at some point. If we look at the UK property market today it is very different to that of a decade ago and the opportunities as a consequence of the Brexit vote could again change the look and feel of the UK market.

It is very important that you are aware of market movements, market trends, investor strategies and you are able to compare and contrast similar situations of years gone by. In your heart of hearts you will know as and when you have enough research experience to move into the “real world” where you can draw upon your new found knowledge. The beauty of the worldwide real estate market is the fact that there are opportunities aplenty and it is just a matter of finding the ones which best suit your strategy, your timescale and your long-term objectives. Knowledge is power…………..

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