Want to start making money from property (Picture: Getty / metro.co.uk)
We know, we know – when you can barely afford to get on the property ladder, the idea of property investment feels absolutely preposterous.
But if you are lucky enough to be in the position where you can make some money from the property market, it’s natural to still be daunted.
According to Terry Blackburn, an award-winning entrpreneur, there are just four things you need to keep in mind if you’re dipping your toe in the property investment pool.
And handily enough, these four things all start with P.
‘If you are new to property investment, it may initially seem complicated,’ Terry tells Metro.co.uk.
‘But if you break property down into four parts, it is really simple and easy to understand.
‘There are loads of different strategies and quirky methods for doing things, and all these extravagant flashy strategies that people talk about online. However, I like to break it down into the 4 Ps.’
So, what are these mystical four Ps? Let’s get into it.
Choose the property wisely (Picture: Getty Images)
Duh. The first part of property investment is property.
Obvious, yes, but make sure you’re not so focused on money that you look past the actual, physical property you’re interested in.
‘You’ve got to make sure it’s the right property in the right area at the right price,’ says Terry. ‘You’ve got to make sure it’s the right property for your strategy and also that the strategy is right for you.’
Terry explains: ‘This is about documents and having the right paperwork:
- Does it need a licence?
- Does it need planning permission?
- What about your finance documents?
- Have you got the right mortgage for it?
- Have you got the right insurance?
‘Make sure you’ve got all the correct paperwork for the property.’
‘You have to get the right type of tenants in your properties,’ Terry says. ‘You don’t want to be buying a swanky buy-to-let for £2million and then putting students in it.
‘You need the right type of tenants in your property because you don’t want them to damage your investment and devalue it.’
Set the right price (Picture: Getty Images)
Terry tells us: ‘This is the big P. You’ve got to buy your property at the right price.
‘You’ve got to have the right price on the insurance, the finance, the planning, the architects, etc.
‘Then you’ve got to charge people the right rent as well, because you don’t want to be charging too little – but you also don’t want to be advertising it for too much because no one will rent it.’
Easy. Once you’ve understood those four things, you’re on the right track.
‘Property is quite simple. There’s a lot of noise online covering all these complicated strategies and quirky ways of investing in property—no-money-down deals and buying properties for £1, for example,’ Terry notes.
‘Sometimes you’ve just got to decide on one strategy and run with it and perhaps try another strategy after that. Don’t try to be too complicated and do too many things at once. Do the basics and simple things first.’
Terry Blackburn is an award-winning entrepreneur and author of Be A Lion, out now.
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