Investing in property is a good way to generate more income and build on your wealth. However, this will only happen if you do it right. To ensure that your investment will grow, here are 6 mistakes you should avoid:
Not doing research.
One should go into any venture with preparation and property investment is no exception. Doing proper and solid research will help you become more knowledgeable about property investment and make informed decisions. While getting professional help is also essential, you shouldn’t depend on them entirely. Proper research can help you verify what professionals are saying to you and through this, you can make knowledgeable decisions about your investment.
Investing in the wrong place.
This is one of the main reasons you should do research. Buying a property in the wrong location is a big no-no. Even though you might be in the right suburb, you might still cop a property in a not so ideal spot. Make sure that you’re looking at spots that are near amenities such as transportation, shops, and parks.
Letting your emotions decide for you.
Buying an investment property with your emotions winning over logic can be dangerous. Picking out a property because it’s pretty not because of fundamental attributes such as location, market conditions is a recipe for low investment returns.
Doing it by yourself.
Managing your portfolio by yourself involves a lot of work—looking for tenants, rent collection, reminding tenants of rent payments, maintenance, being constantly on call for your tenants, etc. While it can save you money, this can also be burdensome for you because these tasks take up so much time. That amount of work will just increase even more when you acquire more properties. Doing it all alone can drive you mad and can lead to a lot of stress, to you and your tenants. This is why you should hire a property manager—they will handle your portfolio for you and will make sure that your investments run smoothly and profitably.
Not having a good game plan.
It is every property investor’s goal to build a profitable property portfolio that can give financial freedom. So you should have plan to achieve this — a map of your property investment journey. Set clear and achievable goals, both short and long term such as monthly income and yields. Make sure that your goals are in mind before making any decisions. Not planning can set you up for failure.
After acquiring a few properties, one might become overconfident that they make poor decisions and buy properties without consideration of their finances. A wise investor carefully weigh their options before making any move, and this shouldn't change no matter what the circumstances are.
Property investments can be a daunting venture, but equipping yourself with knowledge about the industry can help you succeed. So go forth, invest! If you need more help, you can always drop a message.
BEN WAKELY | 0405 000 219
Bardon Agent of the Year