When it comes to property investment, jumping into the market can certainly be a daunting thing.
Lots of our clients come to us with some element of stress and uncertainty.
And frankly, that’s completely fair enough…
because property investment requires a lot of big decisions, as well as a stable foundation of strategy and knowledge.
With plenty of people out there giving advice, whether it’s through the media, or maybe even your friends and family, I completely get it – it can be so hard to choose the right option.
The thing is – if you’re looking to take that next step, you’re probably looking for some guidance and education – as that’s what really builds confidence and understanding.
That’s why we’re here!
So, in the spirit of building your knowledge of property investment, let’s talk about 4 key concepts to AVOID as a property investor:
- Avoid waiting for the ‘right’ time to buy.
As much as it would be so GREAT if we could give you the perfect formula to know exactly when to invest, unfortunately, it doesn’t exist.
We see so many prospective investors get caught up in this idea of having a ‘perfect’ time to buy.
Rather than providing any benefit, it instead just fills you with doubt – where you 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 their target property in their ideal location.
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. It’s about remembering that investment is a long term game.
It’s about time in the market, not timing the market!
- Avoid investing without a strategic plan.
This is something we recommend avoiding AT ALL COSTS!
Investing without a plan is kind of like going to the supermarket without a list – you end up with things you don’t really want or need, but unfortunately, now you’re stuck with them…
But instead of random grocery items you didn’t need, you’re stuck with a property that doesn’t work for your circumstances – a little more costly if you ask me!
A strategic plan brings comfort and direction, and when it comes to a plan, there’s one thing that’s SO important.
Do you know what it is?
It’s YOU.
Your plan should take into account your unique circumstances and goals from all sides – your finances, family and lifestyle, as it puts you in the best position to achieve your financial freedom.
- Avoid thinking quantity is more important than quality
If there’s one thing we LOVE saying, it’s that quality always trumps quantity.
At the end of the day, you might think it’s amazing to have a portfolio that contains 5 or 10 investment properties.
And yes, that would be incredible – but the benefit 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 the potential return. If it’s not higher rental yields and income, its greater growth due to the location and local market.
So, as much as it’s great to reach goals surrounding quantity, your priority should always be on finding property that works for YOU
Want to know more about purchasing quality property? Check out the blog.
- Avoid investing with a short term perspective
As much as it’s VERY exciting as an investor to think about making some quick money, at the end of the day, property investment should be all about one thing:
The LONG TERM.
So rather than banking on the fact a property will go up 100% in 2 years, we always recommend taking the long term benefit of property into consideration. Over time, as property appreciates in value, you are creating equity, whilst still receiving great, consistent cash income from tenants in the form of rent.
Alongside this, flipping properties in the short term can seem like a fun and beneficial route to take, but the most important thing to remember here are those sneaky hidden costs. It all adds up – stamp duty, capital gains tax, building and renovations!
At the end of the day, provided you keep these 4 things in mind, and avoid them as you move through your property investment journey, you’ll be in good stead to make some great progress towards your financial goals.
Use these as a starting point on your journey to understanding the property market, and how you can find your feet to capitalise on the opportunities.
At InvestHer, we’re all about helping women towards their goal of financial stability through strategic property investment. No matter your age or situation, we’ve got your back!
Want to learn more about how we can help you build your financial freedom?
Give us a call on 0455 223 865 to speak to our team!