Over the past decade, it’s been a roller coaster ride for those interested in potentially investing in the property market. Whether it’s been your dream to purchase a house and sell it on, or to purchase a house and rent it out to tenants, the recession made this goal virtually impossible for the vast majority of people. Now, however, the economic landscape is relatively different, and property investment is more viable than it has been for the past half decade.
The is especially true if you’re experienced in other forms of investment, such as financial investment, as this suggests that you’re already well acquainted with the risks (and rewards), and some of the general principles of investment, putting you in good stead to be a successful property investor. So, without further ado, here are some of the reasons you should be thinking about getting into property investment if you have some prior experience in investing.
You’re Already Used to a Volatile Market
It’s no secret that the financial markets – whether stocks and shares or FOREX – are extremely chaotic and volatile. This essentially means that it’s virtually impossible to predict if and when you should buy or sell a particular asset in those markets because there are so many moving parts. Thankfully, the bricks and mortar market is much more stable (not counting the recession), so if you know how to handle the financial markets, you should be able to handle the property market.
Bricks and Mortar Is a More Long Term Investment Strategy
If you’re onboard so far, you should put some thought into considering whether you’ll be able to handle such a long-term form of investment. In the world of financial trading, a weeklong investment might seem like forever, but in property, realistically, it’s likely going to take you around a year to sell a house, and if you’re renting your property out to tenants, you might be managing your investment for decades to come. Therefore, think hard as to whether you think you’re suited to this sort of investment before you’re in too deep to go back.
Those Extra Considerations
Last but certainly not least, spend some time putting together a list of all of those extra tasks you’ll need to complete as an investor in property when compared with being an investor in financial assets. For example, if you’re going to rent out your property, you will need to purchase furniture, have the property cleaned professionally on a regular basis and take out landlord insurance – guides are available though, if you need assistance, such as the Simple Landlords Insurance Guide.
So there you have it: now you need to ask yourself the big question: should you switch from financial trading to investing in bricks and mortar?
