Property Investment Advice

Property investment advice comes in many different guises, including advice from property investment clubs. What new investors really need is a sign post, a 'how to' an 'am I doing the right thing' third party who can give examples and testimonials of what they have done either for themselves or others. Property investment clubs provide this advice and offer investment properties to their members. The big question is are these property clubs necessary and couldn't you do this yourself?

Well, sure you can! However property clubs will already have done the 'hard' work of identifying a hotspot, found the developer or may have good relations with him / her and would have known what was available in the market. So getting property investment advice using a property club for buying off plan is definitely a good idea as they'll have great contacts.

What any property investor is looking for is a property where they have already negotiated a discount to the regular price of the property in the area, then to set about buying it and then getting it tenanted. This is no secret.

The fact is that many people don't necessarily have the time to make this happen. Property purchase takes time and, after all what is being bought are buildings and these take time to develop if new or a while to acquire if second hand. There is value added to the price of a property in every transaction: from the brickie laying the foundations, to the electrician, plasterer, surveyor, solicitor, financier, marketeer and estate agent. Everyone wants a piece of the action. A property club would have taken all these factors into account and would have developed their package so that all an investor has to do is to decide whether they can afford it or not and proceed accordingly. Generally this property investment advice is charged at 2 % by the property club as a sourcing fee for this work - after all if you can get the property you want for the price you are prepared to pay, a mortgage that's feasible and a rental that's realistic, then why not?

As has been said before, the profit is in the purchase price. After that, everything else is downhill. So, you don't need a property club if you can buy property inexpensively. The thing is how do you know if you have a good deal?

Well, it's called research and you need to go and look at an area and decide if it's the sort of place where you think it's going to be worthwhile investing there. You'll need to compare and contrast properties that have sold there previously, you'll need to know what the rental demand is for that area (you'd have to pay a mortgage and after all the business of buy to let is to make income or capital or both!).

There are property advisers that will teach / show you how to do this and they are part of the 'money chain'. Many new property investors will use a number of property clubs and may eventually decide whether they are able enough to this for themselves.

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