Consult The Experts In Order To Prevent Potential Property Pitfalls
Everywhere you look there are tales of folk finding their fortune on the property market. In fact, you would be forgiven for thinking that it is practically impossible to fail if you place all of your hard earned cash into bricks and mortar. You simply throw money at it, sit back, and count the coins as they start rolling through the door, right? Well, not quite.
While it’s true that investing in property is indeed a fine way to diversify your portfolio and one of the best investment options available to individuals, it is important to remember that there is still risk involved. Finding the right property can take a considerable amount of effort, and it’s certainly not as easy as some reports would lead one to believe.
When Things Do Not Go According To Plan
Take David Callaghan, for example. Mr Callaghan believed he was onto a winner when he purchased a luxury home in a remarkably good area. He had managed to barter the vendor down from £695,000 to £650,000 and thought that the property would easily be worth in excess of £750,000 in around a year’s time.
However, the date of which the purchase was made is not insignificant. You see, it was autumn 2007 when the sale went through and, to make matters worse, the property was located in Northern Ireland. Northern Ireland had been transformed in the years leading up to Mr Callaghan’s purchase and property was booming, but no one could have foreseen what was just around the corner.
With hindsight, we now know that this part of the UK was one of the hardest hit by the financial meltdown of 2007 – 2008. The boom and bust that engulfed the Newry area left Mr Callaghan with no choice but to sell just a few short months later at a loss, and what a loss. In March the property was put on the market and fetched a paltry £240,000, losing the investor a whopping £410,000!
A Cautionary Tale
While this may well be an exaggerated case, it does serve a purpose, and that is to highlight the fact that any form of investment does carry a degree of risk. The importance of seeking as much expert advice whenever you delve into an investment market is critical, and it could save you great deal of heartache – not to mention cash.
Sure, in the case of David Callaghan, expert advice may well have proved worthless as very few predicted the utter turmoil that would strike the global markets toward the end of 2007. However, to ignore advice altogether is equally foolhardy and something that has caught many other investors who have been eager to jump onto the property bandwagon in the past.
In order to make your investment work properly for you and to avoid any pitfalls that can be circumvented, it is always best to consult those in the know prior to jumping in feet first. So, if you are considering entering the property market as an investor, you would be wise to contact the professionals prior to making your next purchase – regardless of what the current indicators are telling you.