There’s absolutely no doubt about it – jumping into the property investment market can be a daunting thing.
With plenty of people giving advice, whether it’s through the media, your friends and family, or even some research, it can be hard to know who to trust, and what to take on. Like anything in life though, we see that taking that next step is all about building confidence and understanding – and the more you know, the more you can filter out the garbage from what actually makes sense.
So, in the spirit of growing that knowledge in the property investment world, let’s talk about 4 key concepts to avoid as a property investor. These are certainly the types of ideas that will help you take that next step in turning indecision into action – as they always say, the best time to purchase property was yesterday.
Avoid these 4 things:
- Thinking quantity is more important than quality
If there’s one thing we love saying, it’s that QUALITY always trumps quantity.
Yes, at the end of the day, you might want a portfolio that contains 5, even 10 investment properties. But, the benefit really comes when those properties are of high quality, in a desirable location, attracting great tenants.
Higher quality properties are naturally pricier than their lower quality counterparts, but the investment reflects what you will get in return. If it’s not higher rental yields and income, its greater growth due to the location and prime real estate.
So, as much as it’s great to hit those numerical targets, your priority should always be on finding property that meets your unique needs, whilst remaining within budget.
- Waiting for the ‘right’ time to buy
We wish you could give you the perfect formula to figure when is the best time to purchase an investment property.
Unfortunately, though, there’s never a perfect time. Not because the opportunity isn’t great, but because when we have doubt in our heads, we can always come up with an excuse.
So, instead of getting caught up in waiting for the right time, focus on ensuring your plan is up to speed with your goals and objectives.
Often this idea causes more harm than good, because you can wait and wait, thinking that the stars need to align to purchase that ideal property. Then, all of a sudden, two years have passed, the market has jumped, and you can no longer afford your target property in your ideal location.
If you feel like this is you, don’t stress – it’s never too late to start.
- Jumping into an investment without a plan
Purchasing investment property without a plan is like jumping out of a plane without knowing how to operate the parachute… Whilst being blindfolded and handcuffed.
With a solid dose of luck, there’s a chance you could get out of things safely, but the chances are, things won’t end well.
On the other hand, a solid strategic plan is like a guided skydive, where you can enjoy the view, and let the instructor manage things for you. Confidence, security and enjoyment.
Or, if you don’t like the idea of skydiving, think of a plan like your favourite pillow, providing you with the best support to help you invest in… sleep. We all love to sleep!
In terms of creating that investment plan, there’s one thing that’s SO important.
Do you know what that is?
You should, because you’re very familiar with them.
It’s YOU.
Your plan should take into account your unique circumstances and goals, as a cookie cutter approach when it comes to planning is a major downfall for many investment companies.
Another key ingredient here is research. Understanding the property market and how it relates to your goals, budget and direction opens up a whole new world of possibilities. Rather than buying the place down the street that your ‘expert’ uncle told you to buy, a well–researched plan scopes out the best options for you, Australia wide.
If there’s one thing that we want you to remember here; it’s that a strategic plan = confidence and security moving forward.
- Investing for the short term, rather than long term
One easy thing to do as a prospective investor is to get ridiculously excited about making money QUICKLY.
As we say to all of our clients, property investment is a long term game. No matter how great it is to find some short term equity, the aim is always to create that sustainable future through solid, long-term investment.
Flipping properties can seem like a fun and beneficial route to take, but the most important thing to remember here are those sneaky hidden costs. Stamp duty, capital gains tax, building and renovations ,as well as all those agent fees definitely add up!
SO, if you keep these 4 things in mind: long-term investment; strategic planning; finding quality property, all while not waiting for that ‘perfect’ moment – you’ll have yourself a recipe for investment success.
Interested in learning more about jumping into the property investment market? With a tailored Propell Property Plan, your journey will be as smooth as a parachute ride and as comfortable as your pillow (see what we did there!).
Give us a call on 1300 776 735, we’d love to chat!
