Property Investment Analysis might seem like something that's only for those who love their maths or those without enough confidence to trust their instincts. But there's absolutely no doubt that it's an essential part of making profits through property investing.

Did you know that in most cases the amount of profit you are going to make on a particular property is determined at the time that you purchase the property? Shocking, but true.

The reason for this is to do with several things. The kind of things that you should look at at the time of purchase include :

- what is the real estate market doing in the area

- what is the typical rental value of properties

- will the rental cover your mortgage / give you a good return

- is it an area where tenants are easy to find

In fact, before you even put an offer on a property you should do your sums, and determine what the maximum price is that you can pay for the house and still be at a profit - and then stick to it.

If a property is not going to work out to be profitable then don't buy it. It's that simple.

For the more financially literate amongst you, some of the numbers you need to figure out as part of your property investment analysis include :

- return on investment

- gross and net yield

- break even point

The simple fact is, if you haven't considered these things already and are wanting to get started in property investment - or already are involved - you need to make sure you thoroughly understand property investment analysis as it really can be the difference between success and failure.