>, Investor guides>How to get into property investment – 5 simple steps

How to get into property investment

If you’re considering investing your money, then property investment can offer a host of incredible opportunities.

With the right knowledge, you could build a strong portfolio that generates long term income. But when you’re starting out, the whole process can be a little overwhelming. Cogress can help. Our online platform (managed by a team of experts) can guide you on investing in your first property.

Let’s take a closer look at that first step into property investment, so you can make an informed decision.

Step 1: Speak to an Independent Financial Advisor

You’ll see us mention this frequently across the Cogress website, and that’s because it’s crucial.

Property investment can be very rewarding. There’s a reason why our memberships are growing by the day. But it’s serious business – and your money is at risk whenever you invest.

Before making any decision, or investing any money, you’re best speaking to an independent financial advisor.

We want investors to be comfortable with their partnership with Cogress. For your own peace of mind, speak to someone who isn’t going to profit off any investment you make – and listen to their advice. Discuss your personal financial situation with them, and if they recommend you don’t invest right now, then you shouldn’t.

Remember, it is possible that you could lose every penny of your investment. There is no guarantee that you will see any profit. This is why it’s so important to prepare yourself as best as you can. Never spend anything that you can’t afford to lose.

At the same time, remember that it is also possible that you could make a profit. And that’s why smart decisions (like choosing to get started or not in the first place) are so important for first time investors.

Step 2: What’s the difference between a buy-to-let and a buy-to-sell property investment?

Cogress only deals with the latter – buy-to-sell properties. Our investors put money into a development project, and that property is then sold. Each investor receives a cut on any profits made.

Buy-to-let is when you purchase a property and rent it out to a tenant, who pays you a fee (rent) on a monthly basis.

In general, it’s often advised to vary your portfolio with both types of investment. Our investors can rely on Cogress to identify buy-to-sell opportunities, which come with the following advantages:

Buy-to-sell can earn investors their money back much quicker than buy-to-let

  • With buy-to-sell, investors don’t have to worry about landlord responsibilities
  • Rising property prices means that investors can sell for an increased price within a couple of years (providing the average cost of property rises at a faster pace than inflation)

Again, your independent financial advisor can guide you on the best first step. Ultimately, it’s your call. We’re here if you’re considering buy-to-sell.

Step 3: Decide Where to Invest in Property

If you find that you are in a good position to invest, and buy-to-sell is the road you want to go down, then the first thing you need to consider is the location of any potential new property development projects.

It’s easy to think that investing in a high-yield area will produce the best results, but this isn’t always the case.

Sometimes it may be best to go for up-and-coming areas, which are relatively inexpensive now, but could soon see housing prices soar.

Nothing is set in stone when it comes to area selection. But some cities have proven to be “safer” places to invest over the years, such as London. Other areas can be more volatile – which means you can get a high price one year and a crash the next.

It’s all down to how well you research the market when selecting your opportunities. It’s not easy. And that’s one of the reasons behind building the Cogress community in the first place.

Today, each of our investors knows that those projects they can access via our portfolio, have been rigorously screened by experienced investors behind the scenes. We’ve taken the legwork out of that research phase – but it’s still on you to make an informed decision per location.

Note: Another reason why many of our investors enjoy buy-to-sell investments is because location is less of a factor. See, when you buy-to-let, it’s often the case that you need to live close enough to the property, to ensure you can reach it if needed.

Together, they invest the total amount needed and each benefit from a percentage of any profit made.

It’s free to register – you only pay for your investments – and you’re not obligated to invest at all, should you choose not to.

Step 4: Analyse Your Selection of Properties

When researching property investments, you want to look out for top level information such as:

  • Target annual return
  • Expected duration (i.e. how long it will be before you see a return on your investment).

Note the terms “expected return” and “expected duration” – as mentioned earlier, there are no guarantees on your investment.  Investments with Cogress typically last 18-36 months, but it is possible that they could last longer.

Likewise with “expected return”, it’s possible that you could lose 100 percent of your investment. This is why we always encourage you to seek guidance from an independent financial advisor.

As a property investor, you can never do too much research. Use the top-level criteria above to identify the best opportunities from a list – then from there, zoom in and find out as much about the property as possible – including who is behind the development.

Step 5: Join an Investor’s Community

When you’re first looking how to get into property investment, it’s like getting into anything else – you learn from those who have trodden the path before you.

We don’t pit investors against each other at Cogress. Instead, they join the community to gain access to our portfolio of handpicked opportunities (we only select those we would invest in ourselves). Then they have the opportunity to invest a portion of the equity needed for the entire investment – the rest is funded by other investors.

Together, they invest the total amount needed and each benefit from a percentage of any profit made.

It’s free to register and you only pay for your investments. You’re not obligated to invest at all, should you choose not to.

Always seek independent advice. This blog has not been approved as a financial promotion by Cogress Limited. We are not responsible for the content of external websites. Potential investors must rely on their own due diligence prior to investing.

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Daniel Levene2018-11-16T22:53:00+00:00