How to get started in property investment is a very open question, it really all depends on what type of investing you want to be doing. However we have always given the same advice. Stop spending so much and start saving, you will need some money behind you if you are going to get into property investing and be successful.
Of course there are ways to invest and be successful in property by using other peoples money, but how many people do you think are trying this method, and how many people are successful. If you can change your lifestyle so you are able to invest YOUR money, you will become wealthy in the long term, FACT!
1) Understand investment
So how can you get started? Educating yourself is the best starting point, first on investing in general and then on property investments. There are a wide variety of popular wealth creation books, but by far the best is Rich Dad Poor Dad and The Richest Man in Babylon. We highly recommend that you go and read these books cover to cover before you do any type of investing. But we will give you a quick executive summary of what these books teach.
Rich Dad Poor Dad is told as a story of a boy growing up with a poor dad, you really think you are reading a work of fiction, it’s fantastic. His best friend has a rich dad, and both his poor dad and the rich dad give him advice. The poor dad wants his son to get a great education so he can get a good job and earn enough to buy a house and support a family. His rich dad teaches him about the power of money and how to invest to generate passive income. He also teaches the power of spending your money through a company, so you are reducing how much tax you have to pay. This book is no way linked to property at all, but gets you in the right mindset to start thinking about investing.
The Richest Man in babylon, again told in fiction, teaches you the importance of saving money, the book recommends you save 10% of every thing that you earn, and that you very quickly become used to spending only 90%, it even goes as far to say that you may not even notice it. Once you have saved up enough money you should invest that money so it works for you by seeking advice from people who have done the type of investing that you are looking to go in to. In later chapters it explains how great wealth can be built in this manner, and it does work. Just work out how much money you would have in the bank if you had saved 10% of everything you had ever earned? Now imagine if that was invested and making you even more money. It does not take a mathematic genius to see that you could be a lot better off. This book along with Rich Dad Poor Dad will be among the first we read to our children, if that day ever comes.
2) Understand property investment
Once you’ve grasped the importance of investment and understood how it’s possible to make your money work for you, instead of you having to work for your money, the next stage is to educate yourself about property investment. How you do this will depend on what works best for you when it comes to taking information in. You have the expensive options like training courses and seminars and whilst I’m sure you would gain a lot of knowledge, they can often cost in excess of £2,000 and in our opinion that money is better saved for your first investment.
Personally, I have never been on a paid for training course. I can see the benefit in terms of motivation and networking but when it comes to the knowledge I believe a lot can be gained from much cheaper, and even free sources, such as books and podcasts:
Check out Hayley’s top 5 property investment books for a good place to start your education. There are so many property books available on Amazon for less than £10 each. You’ll find some that are specific to newbie property investors and others that are more specialised in tax planning, refurbishments and HMO (houses of multiple occupancy) for example.
Listen to podcasts
Every week for about 18 months Hayley and I have listened to The Property Podcast, all 140 episodes! It’s a lighthearted podcast by two guys named Rob, they cover a different property topic each week and for anyone new to property I always point them in this direction. All this content is free and even 4 years on we still find ourself learning a thing or two from each episode. There are also a few other property podcasts, just do a search on iTunes, but this would be my top recommendation.
Get out there and surround yourself in like minded people who are doing what you want to do. It’s amazing how much you can learn from others through their experiences, successes and even failures. It’s often said you are the average of the 5 people you spend most of your time with so get mingling with those who are more successful than you to give you something to aspire to.
There are a number of property networking events up and down the country every week. You could check out your local Property Investment Network meet ups, join Facebook groups and attend exhibitions, all of which are free or very low cost. I would recommend The Property and Homebuyer Show and The Landlord Investment Show which are held annually in London and other major cities. These exhibitions are often quite sales driven but there are numerous free seminars where you can learn a thing or two, pick up free books and meet other investors.
4) Join forums
If there are no networking events in your area anytime soon, that’s no excuse not to get started, you can always join a property forum and get stuck in. Create a profile and introduce yourself and you may well find like minded people local to you. You can also use the forums to ask questions, discuss topics or even just watch and learn from other peoples questions. Some of the main property forums I would recommend include The Property Hub, Property Tribes and Property 118. There is also a Facebook group ran by Progressive Property which we find very useful, I believe there is now a charge to be added into the group but it may be a worthwhile investment as the group is made up of over 7,000 members, some of which are leaders in the industry.
We had no idea what we was doing when we purchased our first rental house and made all the mistakes under the sun. We would have done things a lot differently if we had someone to advise us on what to do and what not to do. Fortunately you have found us and through this website and blog we hope to give you all the tools you need to be a successful investor. If you have any questions feel free to contact us or leave a comment.