Property investment may be simple, but it’s not easy. When you look at statustics and see most investors never get past their second property, you realise that most who get into real estate won’t achieve the financial freedom they were looking for. So what are some mistakes Australia property investors must avoid?
1. A plan? Nah, I’ll just go and buy something.
Deciding you’re going to be a property investor is more complex than just buying a property. Approaching investing without a well thought through strategy that fits in with your long term wealth creation goals and financial situation is a fol’s journey. Map out where you want to be in five, 10 ad 20 years time and construct a detailed plan.
2. I can do it all myself!
All successful property investors build a great team around themselves. I often say if you’re the smartest person on your team, you’re in trouble. However you can’t blindly hand over your financial control to your financial broker, accountant or solicitor. It is your responsibility to gain knowledge about the property investment business and become financially smarter.
3. Research?! Who needs research?
I’ve met investors who researched the purchase of their new car more carefully than their investment property. Many buy their investment close to where they life, where they holiday or where they want to retire. They make emotional purchases in locations that are in their comfort zone. The due diligence that goes into purchasing an investment must be more rigorous than that. A number of things to consider include if the property fits in with your investment strategy and goals, the numbers work, and it has upside potential.
Found a potential property? We can help you Discover if it is right for you and complete RP Data reports for you. Contact us today for your complimentary report – 1300 88 27 28.