We have been in one of the biggest recessions in history since 2008 which has also brought with it huge opportunities and profits for those who find the courage and are willing to go against the grain.
Whilst there is great opportunity this also means that property investors are now facing new challenges every day through this huge opportunity. The good news is that by identifying these challenges it means that you can take positive strides to eliminating them, meaning they should not affect you on your investing journey.
Here are some of the main challenges you’re likely to experience:
Changing markets and regulations
The property market is always changing and you can make money in any market providing you know how. When I started my journey at the end of 2007 the market was already changing. The credit crunch had started to take effect, and property prices were coming down. There was a tightening up on mortgage criteria meaning many people were finding it hard to get finance. At the time of writing this blog in 2015 the market has been showing signs of recovery, and it will change again I’m sure over the coming years. It is important to realise this and always keep up to date with changing regulations and the changes in the market. You can do this by surrounding yourself with the right people and team who can keep you updated, and by keeping your own knowledge up to date.
Sometimes no sooner does an investing opportunity become real, it becomes confusing and overwhelming. There is just simply so much information out there. There is so much free, but often conflicting ‘expertise’ on forums and social media sites. As a new investor it’s difficult to know who you can trust and which strategy to start out with. There are many advanced strategies out there that people beginning try to start with. Personally in my opinion, I think it’s always best to start out with the basics and learn the core fundamentals first. Whichever strategy you do choose I would urge you to choose one, or maybe two at most so you can avoid becoming overwhelmed and confused, as this can halt your progress.
Lack of Focus and clarity
This is something I have seen first-hand with many people in the past and it was definitely something I needed to do myself when I began investing. If you let it, there can be many distractions that will keep you from following the path that you originally set out on. This is something I had to learn to do myself at the start, and it is became very apparent that I needed a strategy and plan to keep me focused and clear on my goals. The saying ‘follow one course until successful’ is certainly true and this is what allowed me to not be distracted by other opportunities. That is not to say that you will not expand into other areas, however to not get distracted and wander, it is vitally important to achieve your first goal before moving onto something else.
Lack of finance
This is one of the biggest barriers with people looking to invest in property as most people are conditioned to believe that you need to have lots of money to invest in property. However if these particular individuals dug a bit deeper they would realise that there are different strategies in property that do not require lots of start-up capital and therefore they could still profit if they knew how to. There is Joint ventures and other cash flow strategies such as deal packaging to name just a couple, and by learning how to use these strategies effectively you can build a part-time or full-time income.
Lack of time
We are all busy, and most people in life feel that they don’t have enough time to do everything they would like to. Property investing is often one of the things that people think about or want to do, however they feel they don’t have the time to do so. However, the irony of this is that if you invest extra time and make time now to build your property portfolio, you will become financially independent in the future, which means that you can retire early and spend all of your time then doing whatever you want to do, as you will not need to work for a living. You may have heard the saying that ‘you need to work hard enough so that you don’t have to work’. We all have the same amount of time in a day or year. It’s a matter of how you decide to spend or invest your time, so we need to use it well.
Lack of knowledge
There are many people who really want to invest in property but have no idea of how or where to start. When I first started I was the same and after using trial and error I also knew that I had to get myself educated and learn my craft. Investing in knowledge and investing in yourself is key and one of the best investments you will ever make. A lot of people are not prepared to invest in their property education and this is one of the reasons they will not gain the knowledge they need.
The fear factor
It is an emotionally challenging time when embarking on any new venture and property investing is certainly no different. There is a fear factor for anyone starting out and it is important to remember that this is a totally natural feeling. We have all heard the horror stories with property investing from people who have lost money in property, to others who have had nightmare tenants. It is true, there can be problems associated with property investing just like any other business or walk of life, but in reality most problems can be mitigated. It is only natural to feel fear but you often find the people who let fear paralyse them into a state of indecision, end up using their feelings to put others off. They are not sure what to do or see it as such a risk that they do nothing, and because of this try to get others to follow the same path. I have personally found fear to be a very good motivator in the past and healthy nerves are in my opinion a good thing. For example, we all hear of people who have nasty food poisoning but we don’t stop eating food. Or we have of drivers having nasty crashes, but we don’t stop driving cars. Instead, we take precautions to protect ourselves.
Fear only becomes a major problem when it stops you from taking action and realising your dreams. I have seen this happen many times in the past to people and it is a real shame, as they do not realise how close they are to life changing results. It is something I feel is a very important hurdle to overcome, which you can do, so it does not affect you on your journey.
These are just some of the challenges a new investor can face, both with the right support and guidance you can overcome them, and move forward towards life-changing results like many of our other students.
We offer a free 30 minute no obligation consultation, so phone the office today on 02476 158187 to book the next available appointment where we can discuss your situation and goals moving forward.