Every commercial decision is helped by having a robust process in place, and when it comes to entering the commercial property market, it’s no different.
Investing in property can generate a regular income over a long period of time and give you the kind of retirement wealth you could only dream of. So, if you’re thinking of doing it, it’s really important that you do it right.
This is where, we, at Platinum Property, can come into our own by being both your partner and guide at this time.
Below is an eight-step process that we like to share with all our new investors:
1. Figure out your budget
Before you do anything else, you need to figure out your budget. Take the time to calculate how much you can afford to invest.
Start with how much capital you have, then consider any other equity that could help you. If you don’t have a lot to commit, then think about finding a partner or partners.
By doing this, you’ll firmly know your parameters which will help you avoid any overly risky moves in the future.
You will also need to factor potential costs into your budget. It’s not as simple as the cost of buying the property. Deposits, legal fees, things like refurbishment, these are just some of the other costs you’ll need to consider too.
2. Do your research
Figuring out your budget is part one of strategising what you need to do – doing some research on the property type and location is part two.
This is where reading, browsing and networking comes in. Indeed, this would be the perfect time to chat to us at Platinum Property. These are all big decisions for you so take advantage of all the help you can get.
One good way to get started is to sign up for one of our events, then work with us to see how we can help you through the rest of the steps.
3. Always view the property
Even the shabbiest space can be made to look good with the power of photography. It may be true to say that ‘a picture tells a thousand words,’ but it’s certainly not true that ‘a camera never lies.’
As this is a major investment involving probably the biggest chunk of money that you own, you should do yourself a favour by going to see every property you’re considering investing that money in.
Then when you’re viewing the property be sure to ask yourself questions like, ‘Does it need refurbishment?’, ‘Is there any sign of damp?’ ‘Will the boiler need replacing?’ ‘Is it in a good area?’
4. Make some offers
Diving into the market will be intimidating, but if you’re serious about investing there’s no point in waiting around forever. It’s like that old saying, ‘If you don’t buy a ticket, you’re never going to win.’
This is where the value of doing your math and your research at the outset will be invaluable.
If you’ve found a suitable property that fits within your budget, is structurally sound, is in the right location and promises a return, then don’t procrastinate.
Take a chance and see if you can turn your offer into your first investment.
5. Do up your property
Whatever type of property you purchase, the chances are that it won’t be in mint condition.
Sure, you’ll be impatient to get your tenants in as soon as possible. However, it is worth spending that little bit extra, just so you can get the property to be the way you, and your tenants, will like it.
Find yourself some trusted tradesmen and be sure to get quotes from at least three different suppliers as costs given can vary hugely over the same piece of work.
6. Hire reliable third parties
Working with the likes of ourselves can take a lot of pain out of this process. However, there are a few more third parties you should also consider:
- The first is finding a good broker to manage the mortgage/funding side of the business.
- The second is finding a trusted solicitor with experience in handling commercial property purchases.
- The third is hiring a letting agency.
A letting or management agency can take a lot of hassle out of being a landlord. These companies can help you manage tenants and fix any problems with the apartment. Although they will charge a fee, it’s something that can be built into the rent, so you won’t even feel it in your pocket.
7. Get good tenants in
Once everything is completed, and your costs are fully realised, it’s next time to house your tenants.
Get your place on a site like Daft.ie (or instruct your management agency to) and be sure to vet any tenants yourself, just so you’re confident they will look after the place and plan on staying around for a while.
Then, arrange an inspection after three months to ensure both your and your tenants are happy with the arrangement.
Keep in touch with your tenants at least once a year and be sure to invest in any repairs promptly to keep them happy long-term.
8. Review and advance
The next step is to gain some equity out of the property. Seek out getting a revaluation and once you have a higher value than originally paid, look to re-mortgage your property, so you can regain a deposit to start the process all over again.
Here at Platinum Property, we know by following all the parts of this process, it won’t be long before you become an assured and confident investor.
So why not sign up for our next networking event today?