There are a number of property investment challenges which are often overlooked by new investors. In this post we look at five of the most avoidable investment mistakes. 
LONG-TERM OUTLOOK
Property prices can fluctuate and there is a risk that if you’re not careful you will make poor investment decisions. We encourage investors to have a long-term focus on investment strategies.
What is critical is that you get value for money when you buy. You should buy every property at a discount, to gain instant equity on completion of your sale. This will protect you against a drop in the value of your property in the short-term.
INTEREST RATES
Interest rates can have a big effect on your investment. We should expect some inflation control measures and an increase in interest rates soon.
To counter this, aim to secure a fixed rate mortgage or budget for increased repayments.
VOID PERIODS
There is no getting away from it, there will be void periods, where there is no tenant in your property. At these times you must cover the cost of the mortgage repayment, council tax and any other bills associated with the property. Since this is costly, aim to make your property one that renters will want to stay in for longer. In addition, build allowance for this into your budget. A good letting agent or property manager will do everything they can to keep void periods short.
CHALLENGING TENANTS
Many people worry that tenants will wreck a property and leave it in a condition that requires significant refurbishment. While this can be the case, the majority of tenants will leave your property in a good condition.
Your tenancy agreement should explain that renters must leave the property in the same condition as it was when they moved in. Allowance must be given for fair wear and tear but money for cleaning and redecoration may be claimed out of the tenant’s deposit.
INVESTMENT AREA
The fortunes of the area that your property is located in can also go up or down compared to the rest of the country. Instead look for properties in areas where the economy is based on more than one or two industries.
WHERE THE OPPORTUNITY LIES
All the above challenges are why we do what we do and why we love investing in property. 99 per cent of people wont want to deal with any of these challenges. This means that investors who understand the challenges and are focussed on the long-term will be provided with massive opportunities.
