4 Stories, 1 Goal – What Tips Would You Give to Investors?
As part of the wider 4 Stories, 1 Goal series, we’re taking a look at some of the key questions and top tips for investors that our guests answered about investing for later life. 4 Stories, 1 Goal is a free series designed to get people thinking about their financial future – with insights from property investors and industry experts. You can get your free 4 Stories, 1 Goal series here.
Whether you’re just starting out in investment or you’ve been investing for a while, it’s always a good idea to speak to as many people as possible, especially those who have experience at a similar point in the journey to you.
From industry experts to friends that have invested, take on board as much advice as possible when you can. This is one of the key reasons we created ‘4 Stories, 1 Goal’, to offer different perspectives on investment and pass on their top tips for investors and people planning for later life.
This why we asked our four guests: What advice would you give to investors?
For Andy, his experience as an investor has highlighted the importance of location and leverage:
“If I could give advice to people setting out, or halfway through their journey, it would be two things. One would be the old adage: location, location, location. If you’re investing in property, you’ve got to look at the location and you’ve got to make sure that there’s going to be sustainable interest in renting that property for the foreseeable future. If you get that bit right, it’ll always be rented and always work, it’ll always go up in value.
“The second thing is the leveraging. The money lending. If you can get leverage, if you can get access to funds, a credit line or mortgages, it makes it so much easier. For a small amount of money i.e 20/30%, you can leverage up and get four or five times what you could have with your cash and that’s how over a period of 10 or 20 years you can make some real money.”
Our guest IFA Laura believes that speaking to experts first is vital:
“My one piece of advice to anyone looking to invest is to talk about it first. You need to look at this investment decision, see where it fits in terms of what you have now, see where it fits in where you want to be in terms of longer-term goals and to make sure that it marries up. You don’t want to put all of your eggs into one basket and you want to make sure that your financial plan is flexible enough to meet the changing demands on your time.”
After Maria’s initial investment, she emphasises the importance of research:
“So thinking about if I was to do it again, it is just doing that research, working out who you’re buying from. I know that sounds silly but I think a lot of people assume that you’re going to get the same customer experience throughout which isn’t the case.
“It’s doing the research at the early stages because when you do get excited about the investment and you have your heart set on a certain plot, the reality is it may go ahead but it’s about not getting caught up in it in the first instance. In regards to the markets, from a longevity point of view, look at not just what’s going to work for you in the first 12 months but really in the next five to ten years I’d say.”
Finally, Raj believes investors need to be more instinctual:
“My main piece of advice to give to a new investor would be, when you’re looking at different types of properties to invest in, always go with your gut instinct. There’s always a lot of different properties out there and a lot of different developments and a lot of people can get confused about which property to invest in because of the wide range of choice. Just go with your gut and pick a property that you feel is right, more often than not it will be the right investment.”
Generally, our guests agree that it’s important to research beforehand – whether that’s using the internet or speaking to experts in the industry. However, it’s also important to strike when the iron is hot and stick with your initial feelings. Although it’s difficult, keeping emotion out of your investments is important for remaining subjective and reaching set goals.
You can learn more about securing your financial future in our new series and other top tips for investors in our, ‘4 Stories, 1 Goal.’ Series which you can download here for free.