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When it comes to property investment – or anything really, myths, misconceptions and misinformation are all too common. There’s so much content out there and a billion and one people who think they know best, which means it can be hard to recognise truth from fiction.
When it comes to the property game, these myths can be super damaging – especially when the doubt and confusion they cause can hold you back from opportunities as they arise.
So what are some common property investment myths that are out there at the moment, and what’s the TRUTH?
MYTH #1:You need a huge deposit to get started:
One of the BIGGEST myths out there is that you need a huge deposit to even get your foot in the door of property investing. So many people believe that if you don’t have a 20% deposit saved up, you’re a goner – but that’s just not the case.
The truth: It’s actually completely possible to begin your investment journey with a smaller deposit – especially with so many different financing options out there. From the LMI to the First Home Owners Grant, to the First Home Loan Deposit Scheme, to a Family Guarantor Loan or purchasing a smaller property requiring a smaller deposit, there are a ton of options out there that allow you to break into the market without that 20% saved up.
MYTH #2: The more expensive the property, the better the investment:
It’s easy to think that purchasing a property with a high price tag must naturally mean the returns will be huge too. High-end properties usually go for much more, so the potential for a bigger return seems logical right? Well it’s not always your best bet and it’s not always a guarantee.
The truth: The best investments come from properties in good locations, with high growth potential, and where the market is undervalued. And the reality is that these properties may not necessarily have the highest price tag, but will offer higher capital growth in the long run. So the importance is in focusing on a property’s potential for growth, rather than just the high price tag.
MYTH #3: Property is a ‘get rich quick’ game:
A lot of people out there are drawn to property investment because they think it will bring in the big bucks – and fast. Flipping homes or the allure of super high rental yields sounds enticing, sure, but it’s rarely the reality and there’s always more to the story.
The truth: True success in property investment is all about having a LONG TERM strategy. Sustainable wealth comes from a slow and steady approach, and being patient – to reap the rewards in the future. Those ‘overnight success’ stories often leave out crucial information or hidden upfront costs, and they’re just not the norm.
MYTH #4: Debt is always bad:
The word debt often fills people with anxiety and stress, and it’s generally seen as a bad thing to have any sort of debt. And sure, it can be a risk – but not all debt is created equally.
The truth: There’s a big difference between bad debt (such as credit card debt or personal loans for that jetski your mate uses once a year) and good debt (debt that helps you build wealth – like investments). When used wisely and with a solid strategy in place, leveraging debt in property investment can actually work in your favour. Investing in property allows you to pay off your debt WHILE your asset appreciates in value – building long-term wealth in the background. The key is in smart borrowing and ensuring you have a solid financial plan.
MYTH #5: You can’t invest in property without experience:
Lots of people think they need years of experience before they can start investing in property. They think they need to know the market, property law and finance like the back of their hand before they can start. But the barriers to entry are much lower than you may think, and these are all things you can learn along the way.
The truth: While experience does help, it’s absolutely not a necessity. Everybody has to start somewhere right? Lots of first-time investors see success by seeking professional guidance, doing their research and focusing on areas with strong growth potential. There are so many resources out there for you to learn as you go, and our expert team here at Propell are always here to help too!
Successful property investment is all about making smart, strategic decisions in line with your goals, and listening to the noise and misinformation out there is a sure-fire way to hold yourself back.
So focus on yourself and your goals, and reach out for assistance from experts if you need it. This will place you in the best possible position to see long-term, sustainable wealth, and ensure you’re not missing out on big opportunities by buying into the myths that hold so many people back.
Ready to start your property investment journey?
Contact us here or give us a call on 1300 776 735 to learn more about how we can help you invest with confidence.
