5 of the Biggest Property Investing Myths Debunked
When it comes to investing in property, like all investments, there are often misconceptions – particularly from first-time investors and overseas investors as they get to grips with the UK market or the buying process.
Here are five common myths we often hear…
Myth 1: You should wait until the property market crashes before buying a property.
While the property market can have an impact on the success of your investments, a savvy investor knows the best time to invest is when their time and resources allow them to. The right strategy will be able to withstand market conditions, especially if investors are able to hold onto property long-term and achieve capital appreciation.
Myth 2: Investing in property is high-risk.
While any investment comes with an element of risk, investing in residential property has proven to provide stable long-term returns and capital growth. Again, this depends on the strategy you adopt but most buy to let property investors can expect to see the value of their property grow significantly over the course of five to ten years.
Myth 3: Property investing allows you to get rich quick.
It can, but that’s only if you know what you are doing and you put the work in. Some investors have made large amounts of money very quickly, usually in proportion to the size of the deal they have taken on and the amount of risk they have been prepared to take.
Myth 4: Property investing is too much hassle.
Property investing can be a lot of work, but the rewards are often worth it. The key is to delegate what you can to people that know more about the areas you don’t rather than try to do everything yourself and make costly and time-consuming mistakes along the way.
Myth 5: You need a large amount of money to get started in property.
It is often thought that you need to be wealthy in order to invest in property, but this simply isn’t the case. The key to getting started in property investing is to leverage your income and equity and use it to build the right strategy to meet your long-term financial goal. You could also use other people’s money (joint venture) to help you fund a buy to let or a refurb property to flip.