Time to Review or Set Property Investment Goals

Time to Review or Set Property Investment Goals


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At the start of a year it is always a good time to evaluate what you have achieved in the previous year and to check whether you are on target with your property investment plan. If you don’t have plan then this is a good time to develop one so that you know what you are aiming for.

What are you hoping to gain from property?

Many people have goals but they are not specific enough. For instance you might want to quit work or make lots of money. What does that mean in real terms. If you want to quit work ask yourself these questions:

  1. When do I want to quit work by?
  2. How much do I need to earn to do that?
  3. Do the timescale and the required earnings match?
  4. How can I get there?
  5. How many properties do I need to own and let out to achieve that salary?

 

If you want to make lots of money the questions are similar:

  1. How much is lots of money to me? This will differ from person to person
  2. What do I need to do to get there?
  3. How many properties do I need to own and let out to achieve my dream?
  4. Can I wait for the money to build up?
  5. Are my goals realistic?

Measure Progress

You will need to measure your progress regularly – at least yearly to make sure that you stay on track and are not dreaming. Here is an example of what you can achieve in a few years:

Investment Plan:

If you have roughly £50,000 to invest and reinvest profits this will be achievable. To earn £1,500 per month by the end of three years (you need to add your figures & timescales).

Year 1

Buy one or two investment properties that will let for £575 per month with £300 net pre-tax profit. Reinvest profits and continue saving

Year 2

Buy second property if you only bought one in year one or continue to reinvest rental profit if you bought two

Year 3

Use capital gains & rent reinvestment money to buy a third property by remortgaging property 1 and releasing equity.

This is typically how most property investors grow their portfolios. If you have less money you will need to scale down your expectations or look at alternatives.

Need More Information?

For details of how to find investment properties that will offer you decent returns take a look at my book shown below. If you need more guidance or information or want to invest for a property pension take a look at the other two books.

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