1 – Successful property investing takes both strategy and the real market knowledge to implement it.

Investors need to have a clear strategy for building and maintaining their property portfolio. This may be to target a particular demographic (such as students or young professionals), a particular area (such as London and its surroundings) or a particular type of property (such as desirable new build). They then need to research they chosen approach to get the information they need to make it work in practice and they need to continue their research to ensure that they keep abreast with (if not ahead of) market trends and thereby keep their portfolio in good shape.

2 – Successful property investing takes motivation and organisation

Doing proper research takes time and it is not just a one-off activity. As the old joke goes, change is the only constant in the world and successful investors in any area need to make the time to keep on top of all new developments. This means that property investors need to be able to organise their schedule so that it includes time for this research and since there are only 24 hours in each day, this can mean either sacrificing or delegating other activities. This level of commitment takes both motivation and organisation.

3 – Successful property investing generally takes a support team

Successful property investors understand the importance of human relationships and of having a good support team. From initiating a purchase transaction with the seller, be it through an estate agent or directly with a property developer, to dealing with financing organisations and letting agencies (or tenants directly), to staying on top of legal requirements and managing the financial side of property investment, property investors understand the importance of getting support from the best people and of maintaining good relationships with them. There are two people in particular that most serious property investors will want to have on their team.

The first is a good lawyer. There can be a lot of legal requirements to be met when dealing with any form of property investment. Using a good lettings agency can mitigate many of these, but it can still be very much in a landlord’s best interests to have at least some level of familiarity with the relevant laws and a source of legal advice if needed. Good lawyers can also prove invaluable when it comes to understanding the key points of leases. While leases for new-build property are generally relatively straightforward, leases for existing property, particularly older property can be much more complicated and it is very much to the buyer’s benefit to resolve any issues prior to the exchange of contracts.

The second is a good accountant. Property investment and taxation go hand in hand. Good accountants will help with statutory compliance matters such as the preparation of rental accounts, the submission of personal tax returns and the provision of representation in the event that HMRC makes an investor the subject of an enquiry. They can also offer consultancy services, such as offering guidance as to when a corporate ownership structure might be more efficient than personal ownership and also what options might be available for reducing the cost of owning and/or selling property, such as making the best use of various forms of tax relief and where it is possible to off-set costs as tax deductions.