A good property investment strategy is a good one and a bad one is a bad one. While most property investment advice will focus on the core strategy, proper research, how to identify deals and such like, this property investment guide is solely on how to boost an already good investment by applying additional criteria and steps.
Write a Detailed Plan including a Set of Projections and Backup Plans
There are three types of investors who fail to make money. The cautious-investor, who spends so much time researching, learning and planning their investment property strategy, that they never make an investment. The casual investor, who throws his money into something on a whim without doing the proper research or seeking any advice on property investment. And the optimistic investor that does all the research but fails to plan how the investment will make money or be judged; believing that good investments will simply bring profits.
The investor who rarely fails to make money is the one who does all the right research, speaks to all the right people, and then puts together a detailed plan of how the investment is expected to make money, as well as ways to salvage the situation if the initial plan fails.
Keep Leverage as Low as Possible
This is to say, use cash and other funding methods over bank loans and other borrowing where possible. This is because the interest rate on borrowing will always be higher than the interest earned on savings. So it makes better financial sense to use your savings to make investments, and use the returns to rebuild your savings and restock for fund future investments.
Be Ambitious, Be Ruthless and Trust Your Gut but Ignore your Emotions
As every investor knows there is only so much research can tell you. It is very important for investors to trust their gut. It is your money on the line and we have a natural instinct to read body language; if someone isn't giving you all the facts, or is bending them slightly the chances are you will know. In some cases (BMV) you will only have time to research that it is a genuine deal and all legalities, in these cases you have to trust your gut and be ruthless, if it is a good deal, take it.
On the other hand it may be that your gut is telling you that it is a poor investment, but because it is the house across the road from the one you grew up in sentiment is trying to make you ignore your gut. It is important in these cases that you trust your gut and ignore your emotions.
If an property or deal really stands out as a really brilliant investment but is maybe a little above your original budget you have to be ruthless and ambitious enough to trust your gut, and believe you can make up the extra spending in extra profits.
If you have a sound strategy for investing in property, and you can add to it any of the above you should see your investments boosted.