As with any large project you should be prepared, and have the right tools in place, when investing in property. So set up your workbench and let’s unpack our toolbox.
A detailed plan of action is number one. Have a strategy in place, including time-line, budget and financial buffer for project over-runs.
It can be a grind researching and working through red tape, but it’s an essential step to ensure you understand all aspects of your undertaking.
When analysing an investment opportunity, if things don’t measure up, decide whether it’s worth going ahead or looking elsewhere. Trust both your research and your gut feeling. Each have a part to play.
Even if you’re not investment savvy your ambitions needn’t be a pipe dream. Surround yourself with experts who can advise you where necessary. You team may include a property professional, finance broker, accountant and a solicitor.
Investing can be a complex process so don’t get up tied in knots. Use your investment team to straighten out any points you’re not clear on.
Whether a passive or home-improvement investor, you need to keep a grip on how the project is progressing. Allow sufficient time to stay informed, both verbally and written. Just consider the money you are investing, you don’t want mistakes because you weren’t on the ball.
Property investment comes in many guises: passive investment on a new build
, minor improvements to a modest home, major refits and extensions, demolition & rebuild, and subdivision are the most common. Angle your project to your strengths. If you’re not a hands-on type or you’re short of available time opt for passive investment instead of a major renovation.
If you’re renovating before selling for profit
, divide the project into manageable sections and work through these one-by-one.
Swiss army knife:
Don’t cut corners, keep quality in mind and don’t bite off more than you can chew
Using a project manager to oversee a major renovation can take the strain off you, but hammer out the details so you’re both on the same page. You don’t want to arrive on-site to find unexpected demolition or other large unplanned alterations.
When dealing with tradies it can seem like it’s not a level playing field; you expect them on-site and they’re working elsewhere. Tradesmen typically work several sites concurrently so pin them down to specific times to work on your job.
Ratchet up the pressure if you’re not moving forward. Regular contact with your ‘expert team’ and others involved (tradies and project manager if renovating) ensures they work to your timetable.
It is worrying when things don’t go according to plan but small setbacks (which can seem gut-wrenching) can occur. A well-planned financial set-up can usually cope with time-delays and unexpected costs.
However you look at it, investing in property is a step-by-step process
, you need to put the pieces together in the right order to get the best outcome.
Another few tools, reinforcing the above include:
When things aren’t working the way you think they should, just stay calm, no throwing your weight around (or anything else for that matter). People-skills are all important to keep things on track.
Goggles, gloves, mask & band aid:
Always, always, always protect yourself by staying informed.
Who’s in charge? You are. Remember, everyone works for YOU so keep them on song.
If you haven’t got some of the tools above, or don’t know how to use them, pick up the phone and call your investment team. They are there to advise you and ensure you achieve the best financial outcome.
Oh, and don’t forget the lubricant
, a beer here and there will ease any temporary investment wrinkles.
is CEO of Multifocus Properties and Finance.
Philippe has over 10 years experience in property investment,
he has helped many first time and experienced investors achieve their goals.
Disclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property