First time property buyers ought to be aware of the potential rewards and pitfalls that can be associated with a first time investment. However, with savvy management and planning, the risks can be averted to improve your property investment rewards.
For first time investors entering the property market in the UK, there are some things that should be considered when purchasing a property. Along with the opportunity to make extra money from property equity growth and rental cash flow, there are common pitfalls that first time investors make when they purchase their first property. And more often than not, these pitfalls can often lead to costly overall outcomes.
The message that is usually promoted in property investment is “location, location, location”. However, in addition to the location and opportunity seeking, “risk management” is a fundamental factor in developing your property investment success.
In the United Kingdom, there are common expenses that come with property investment. The most notable being:
Stamp duty – a one off payment that you make for purchasing the property.
– Legal fees – The fees for processing the documents and property transfer.
– Council tax – The fees that are paid to the local authorities in the area that you buy and in return the council provides services such as garbage disposal, street lighting, hospitals, etc.
– Water – a fee for water usage is payable in the United Kingdom.
If these fees factors are mismanaged, they can cause problems which could possibly lead to legal action and at worst, foreclosure; putting an end to your property investment ambitions.
Therefore, with first time investors, it is good to have a ‘rules of thumb’ when you are investing in a property. The following guide will assist in planning for your first property investment.
Risk management and asset protection
You will be seeking to protect your property from physical damage, legal errors and financial foreclosure. The ideal way to protect your asset will be through a series of policies, legal documents and general practice.
1. Pay your bills on time.
2. Abide by the local authorities rules and legislations.
3. Ensure that you have to correct insurance policies to protect your property and mortgage. It is ideal to compare landlord insurance that is best for your situation.
4. Ensure that you have all legal documents that confirm your property owner status. It is good to have a personal lawyer as a reference for any issues that may arise in the future.
It is important to remember the importance of risk management and asset protection in property investment as well as the investment property search factors that are required to achieve your property investment success.
Property Quote Direct acknowledges the importance of potential risks associated with property ownership and property protection in both the financial and tangible aspects. Often, the risk management and the full scale of property protection is overlooked buy the first time buyers and increasing awareness in property protection. By making first home buyers aware of protection, they can assure themselves that their property will have a higher degree of safety measures in place in the case of any threats against their property.