It is to my great amazement that when I look at the planning which people do before buying property, you often find they do more planning when it comes to organizing a holiday than they do before buying property. Now if you ask me this makes no sense what so ever.
To be able to successfully see buying property as a form of asset investment and a vehicle to drive you down the road to financial freedom, you need to be sure that the investment which you are making is the correct one and one which is sustainable in any financial conditions.
I am a firm believer that one should firstly invest in yourself so as to know that you have the ability through obtaining the correct knowledge to make any investment the best possible one which you can and that you will not have to give it up and loose money the moment that financial conditions change.
Here are a few things which you should take the time to be sure to understand before you decide to make property investment decisions which might come back to haunt you should you choose not to:
1. Invest in yourself – Equip yourself with the knowledge you need to make it a viable investment.
2. Do property research – Be sure that you find the correct property for your investment by doing the required research on any prospective properties so that you know what it is that you are buying and how its history and environment might affect your investment.
3. Evaluate the property structure – There is no point in investing in something which is likely to fall to pieces any day soon. When buying property, realize that it is a long term investment and thus the structure which you are buying should be solid.
4. Eradicate personal emotion – Do not buy property when your decision is purely fueled by emotion, rather look at the facts first and then allow your investment decision be based on what you know rather than what you feel.
5. Understand the financial implications – Many people choose to start buying property while things are going well financially, be sure to use one of the many investment analysis tools which are available to be sure that you have allowed financially for the worst case scenario, when choosing which of these tools to use, be sure that the one you select will have reliable results no matter what the market conditions as then you will know that you will not be caught in a financial predicament when the market turns.
Use these words of advice so as to be able to avoid having to make the same mistakes as other have before you, I always say that it is better to learn from the mistakes of others and not have to repeat them than to have to try to learn them all over for yourself.