Investing in property for beginners is an exciting journey, but full of pitfalls that even the most experienced can fall in to if they aren't careful.
Are you a first time property investor? Perhaps you’ve inherited some money, or you want to put the equity in your home to better use. Or maybe your savings are devaluing thanks to very low interest rates?
There may be many reasons to start a property investment portfolio. But there are some fundamentals to consider, different investment types to look into, and the right structure.
Taking the First Steps into property investment
Firstly, and most importantly you must treat your property investment portfolio like a business. That’s because it is.
Like all businesses there are some fundamentals to consider:
Write a business plan and carefully consider your goals and objectives.
Consider your business structure so that you maximise your profits and minimise your exposure to business taxes.
Consider your income and expenditure. Draw up sales and profit and loss forecasts, and stress test them so that you can see how bad times will affect your income.
Include a cash flow forecast and stress test so that you know how your business will perform in various scenarios.
Seek professional advice from a specialist accountant, property investment professional, business adviser and solicitor.
That all sounds like a lot of work!
Well, for the inexperienced property investor it certainly can seem quite an overwhelming workload.
But don't despair, there is a lot of help available if you really want to dip your toe into the exciting world of property investment.
The Investor Starter Pack
We are delighted to introduce you to our Property Investor Starter Pack, a service designed especially for the first time property investor.
Clck on the image on the right to download the pack and discover how Ancojada Property can help you to take your first foray into the world of property investment.
The objective of the Investor Starter Pack is to bring aspirational investors into the property investing community, and to provide vision, clarity and focus to those at the start of their property investment journey.
Whats included in the pack?
Cash Flow Forecast:
Using progressive financial planning practices we look in detail at your income and expenditure, assets, and liabilities to build a complete financial picture so that you can make educated decisions to achieve your financial ambitions.
Goal & Outcome Review, Including DISC Profile:
We provide the Investor(s) with a Lifestyle questionnaire, and create a DISC profile for each Investor. This report allows the Consultant to tailor the investment pathway with confidence, taking into account the individual’s tendencies & preferences.
We use one of our trusted Accountants to provide a review of the tax implications for each investor, providing clarity as to whether a sole trader or Limited Company tax structure would be most beneficial.
Utilising the Cash Flow Forecast, DISC Profile and Tax Review, the Consultant holds a review meeting, where they will create an Action Plan for the investor, including a Deposit Saving Strategy, the options of utilising a Joint Venture with other investors, or the potential of utilising family support with funds.
Contact us for more information
So, if you are ready to take a positive first step towards becoming a property investor, give us a call today and ask to speak to the Ancojada Property team.
Ancojada Limited trading as Ancojada Group is not authorised or regulated to provide financial advice.
All financial advice is provided by other regulated businesses.