Top 5 mistakes property investors make
Buying with your Heart
Far too often I see investors buy in an area they know and feel comfortable with. It might be somewhere they grew up as a kid and may have no growth outlook at all. The better investment may be close to a city that they don’t know at all and therefore are fearful of doing it.
The Fear of Missing Out
This is starting to happen in the Sydney market. The price has risen quite a lot over the past 2-3 years so buyers are now in a panic and trying to buy before they miss out. What ends up happening is that they buy at the top of the market and then find that the property doesn’t grow at all for quite a few years so they get frustrated and then sell it before the next upturn. Don’t worry about missing out, there is always a good location to buy in.
Paralysis from over Analysis
I have clients like this that talk about buying property for years and years. They research everything about the location and by the time they are ready it’s already sold or the market has increased and they can’t bring themselves to pay more than what it was a year ago. Do your research but don’t over analyse things. You don’t need to be a genius to make money from property. Buy in a good area and hold it for a good amount of time and you should make money.
This is a bit like my Wife when she goes shopping. She tells me how she saved $100 on buying a new pair of jeans. Apparently they were $400, but she managed to get a great deal and get them for $300. If you go down the road to a cheaper shop the same jeans are for sale in there for $200, but they aren’t on sale at all. So be careful and make sure the deal you get is actually a deal.
Taking Unqualified Advise
Don’t trust an organisation to take control of your position and recommend what you should do. Make sure you educate yourself and then you’ll be able to identify those businesses that are there to help and those more interested in lining their own pockets. We provide a full education service and no cost to you and there are other good companies out there.