Property investing is a team effort. the entire process involves partnering up with another person or company. If you think you can do it on your own and take all the profit, then it might be a sorry journey for you. Buying your own property to live in you need a team of people to help you collect the keys.
If you are buying for investment, then you need to either save up the deposit, or team up with another individual who has cash they would like to invest. You may have the knowledge and time to invest in refurbishing a run down property, but if you are a bit low on cash to invest, then your project will struggle to get off the ground.
With property investing, you need positive cashflow to keep yourself buoyant. Even though some people might say family is king and number one, this is true in life, but not in business and investing. What is cashflow though? Cashflow depicts the flow of money into and out of your business.
For a buy to let property, there are various sources and drains of your money:
Being self employed might mean you are the boss of yourself with only yourself to answer to. You may be classed as self emplyed but work for one or two other companies and undertake jobs that they hand you to go do - a form of sub-contractor.
Working for just yourself, allows you to work your own hours, and try out new ideas and rewards you with greater satisfaction for a job done good!
Self employed status brings greater tax advantages i.e. instead being able to spend whats left after the tax man has been at your pay packet, the tax man gets a % of whats left after you have allocated all costs towards the company - less tax to pay and greater growth for your company.
Many a person, when asked, "Where's best to invest my savings?" will usually reply "In property." If you then ask them if they have any investment properties, a lot of them reply "No, but I know someone who does."
So why is it that the majority of non property investor people not invest in property? What was it that prevented you from investing in property or starting the journey into this brave new world?
When I've mentioned to people that I invest in property, they say how it is a great idea and that I'm so brave or that I'm so fortunate. This always leads me to asking them why they haven't or don't invest. Some of the replies are as follows:
As reported by the Daily Express newspaper the other day, house prices up £2,221 a month and wages up also. Full article here...
This is great news for those who have a house. However, I don't think 2.7% annual salary increase will keep up with the property increase though. If you are not a first time buyer and looking to buy an investment property (or another house), you will more than likely require a 25% deposit. If you are going to wait till next year to save up, then you will now have to try and save £555.25 (25% of £2221) per month to keep in line with house price increase.