The Most Common Mistakes To Avoid When Buying Property To Rent

When purchasing investment property, an investor must always be mindful of how a particular property will achieve the ultimate goal of producing a return, and whether that return will be seen in the short or long term.

In the short term, particularly with a busy property market, the main approach will be to buy a building that is seen as undervalued, renovate it and sell it for a profit, a process known as flipping.

However, one of the best ways to earn passive income in the long term is through investing in rental property, which if managed correctly effectively provides a steady source of income without an investment of too much time and effort after the initial purchase.

This is, ultimately, a long term prospect. As with all long term investments, planning and care are essential to avoid making one of these common mistakes that could damage your investment.

Doing It All Alone

Property investment involves several very different specialist roles to help source, negotiate, purchase, manage and run property. An investor cannot do this alone, and so they need to invest in a property manager who can help them manage their investments more effectively.

Trying To Have It All

The more properties in your portfolio, the more time you will need to invest to manage them all effectively and the more you will need to divide your time between each of them.

Avoid taking on too many properties than you feel you can handle as this can lead to mismanagement.

Getting Too Attached

In the end, your property portfolio should only matter to you in terms of how much revenue it generates. Try to avoid developing too much of an emotional attachment to a property, as that can sometimes lead to making decisions that fail to maximise potential income.