Top Tips For Doctors Interested In Property Investing
1. Education, education, education
Read books, attend webinars, courses, and workshops and learn from other property investors. It is not enough to read the latest newspaper article about the property market or take some informal advice from a friend. Anyone can invest in property but anyone can also make big mistakes. Make sure you understand the property market, the factors that affect it, and the different strategies you can use to invest before doing so.
2. Make lenders love you
It’s possible to invest in property EVEN if you are bankrupt or in debt but be warned, if you want to have access to mortgage finance (or private investment) it will be much easier if you have a squeaky clean reputation and credit history. Get rid of any bad debt and ensure you have a good credit rating to have the broadest range of finance options.
3. Stay cool
You must learn to leave emotion at the door. If you haven’t bought your own home before, let alone invested in property, it can be very easy to become emotional about every property ‘opportunity’. Keep emotion out of it and try to focus only on the numbers.
4. It takes teamwork to make the dream work
Think you can become successful by doing it all yourself? Wrong. You are going to need a ‘power team’ of professionals to help you invest in property. There are well over 50 you’ll need on speed-dial but the top 3 you are going to need are: a great mortgage broker, accountant, and a solicitor.
5. If you take care of the downside, the upside takes care of itself
All investments carry risks as well as rewards. Ensure you understand the risks (void periods, market volatility, repairs etc) and insure yourself against them where possible. Be conservative in your calculations and have a plan for the ‘worst case scenario’.
Fail to plan, plan to fail
When you are ready to start, set your 12 month, 3 year and 5 year goals and set a timeline to plan how you will achieve these goals. You wouldn’t plan a trip without planning how to reach your destination and the same goes for investing in property.
Lafina Diamandis is a UK doctor and property investor.
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Have you successfully invested in property or encountered challenges doing so? Do you have any tips to share for doctors starting out? If so, I would be interested to hear your views on the points raised in my article and any related experiences. Please leave your comments below!