A career in property management is one of the most sought-after professions in the real estate industry today. Deciding to become a qualified professional property manager is not an easy step. You may need to invest a lot of time, thought and consideration to ensure you’re making the right decision.
If you’re wracking your brains wondering if property management is the right route for you, then the following Frequently Asked Questions can help put all your concerns to rest:
1. What does it mean to invest in property?
Many people wonder about property investment and what it exactly entails. Chances are you’re likely to encounter requests for renovation, where a property is put up for sale, renovated and then put up for sale again. So a property manager will buy a house, restore it and advertise it for resale.
In recent years, the property business has witnessed a depression, as opposed to the boom years of 2007. And buying and reselling is no longer profitable. Unless you’ve got tons of cash to turn the property around fast and get it back on the market.
As experienced property dealers ourselves, the other route that we recommend to our customers is – buy to let. In this way, you can invest in property with the aim of generating handsome cash flows, and produce a sizeable monthly income by merely leasing your property to tenants.
2. Why is property investment different from bonds, shares or stocks?
Because properties never lose value or depreciate. Although stocks and shares, depending on market forces, can reap incredible returns, they’re also prone to dipping down to shocking levels, thereby leaving you broke. But with the property, it is a different story. Even when the recession hits hardest, properties can still yield annual returns of up to 25%, and this makes them a much safer investment opportunity.
3. Do I need capital to invest?
Not! If you can master the right strategies and invest minimal savings from your account, it’s possible to buy properties without placing your own house at risk. A quick browse will reveal investment strategies such as No Money Down, or No Deposit Down. These strategies are designed to help you invest with little costs involved. But you will have to part with stamp duty and legal fees, but you can quickly negotiate a reasonable rate of discount that your property will essentially pay for itself.
4. How about the experience?
You don’t have to have prior property management experience to make a profit from selling the property. If you can fashion your property portfolio, with the right investment strategies, and the ability to negotiate deals to your favour, and the right property discounts, then you’re good to go. But the bottom line should be to invest in properties that can produce quick cash flows, while you continue to advertise aggressively.
5. How about training?
Enrolling in a property development course is always a good idea. It can help to equip you with sound investment strategies. Just ensure you research on the many available development courses before enrolling, by checking out their course content, case studies, history and only sign up to a course that can offer you a minimum of 5 investment strategies.