A solid property investment business plan is like a good map, it can help you find your way through uncharted territory so you can avoid the traps and head straight to the treasure. Here are some useful tips to help you create a good property investment business plan to aid you in your investment journey.

Your available funds

Even if you’re planning on using your available cash to finance your investments, you may want to take the creation of your business plan as a sign that you want to double-check your credit record, correct any mistakes (they happen sometimes) and, in general, make it look as good as you possibly can, partly in case you want to get credit later on and partly because your credit record can be checked for other reasons, e.g. in some cases, by insurance companies.

Your investment horizon

Generally speaking, property is best thought of as a medium- to longer-term investment although there are some opportunities for those with shorter horizons, such as property-linked bonds.

Your appetite for risk

It may be worthwhile taking a hard-and-fast decision now on whether or not you’re prepared to use the equity in your own home as collateral.

Your available time

In addition to looking at the performance of your investments, you also need to remember that property requires insurance and maintenance, so you will need to budget time to do these yourself or budget money for someone else to do them for you.

Your skillset

The chances are you will have some, but not all, of the skills you need to build and manage a property portfolio. You may be able to acquire some skills (e.g. DIY) but will almost certainly need professional help with others (like conveyancing and tenant/landlord law). The key point here is to be realistic about your assessment and, if in doubt, err on the side of caution. You’re unlikely to become a DIY expert overnight if you’ve never picked up a tape measure before.

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Create your SMART goals
SMART goals may have become something of a management cliche but Specific, Measurable, Achievable, Realistic, Targets genuinely are the way to go when it comes to thinking about where you want to be in the future. The good news is that the research you do to determine what these should be will probably stand you in great stead when you move into active investing.

Map out a path between start and finish

When you are mapping out your path, remember the many (true) stories about people who’ve blindly followed sat navs and wound up in uncomfortable places. In other words, while internet research is highly recommended and can take you a long way, it does not replace either tailored advice from relevant experts (such as property investment companies and accountants) or first-hand experience. If you find yourself struggling to create your map, then you may want to look at getting professional help, of which there is plenty available.

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