Before you step into property investment, STOP! Understanding what you really want to achieve is crucial, if you are going to work out how to attain it! Don’t be afraid to address it: What do you really want out of life? Your investment? Your next step?
Nail this and you will become a more effective property investor.
I was recently talking with an investor, and asked her what she wanted from her property investments. She told me she was planning to invest in a house of multiple occupancy (HMO) in Doncaster. When I asked her why, she gave me a whole heap of reasons why she thought this was a good idea. Really good reasons. Community-focussed reasons. The demand for affordable housing is increasing. People need cheap and flexible living options. With the increase of immigration, councils need somewhere trustworthy to place people. You see the picture.
But, my question about why she specifically wanted to invest in HMO in Doncaster, is actually more fundamental than any great reasons.
It’s my belief no investor really wants to own HMO in Doncaster!
Nor a buy-to-let in Hull!
Or even serviced accommodation in Southampton! Etc.
Those investments are, essentially, just vehicles to help you achieve what you really want.
What you really want is usually one or more of the following GOALS:
- Regular income
- Pension provision
- More time with your kids
- Early retirement from a job you hate
- A secure place to park some capital
- An investment which frees you to travel more
Be authentic! Start with realistically identifying your goal, then choose the vehicle which will help you achieve it most effectively – not the other way around! Don’t fall into the trap of choosing a vehicle which ends up leading you to the wrong objective! Regardless of how good it looks!
So, WHAT’S YOUR GOAL?
Then we can honestly examine the best vehicle for you to reach your goal.