Just like there is never a perfect time to have kids, there is never a perfect time to invest in property. There is always going to be something that comes up. Economic setbacks, natural disasters, rate hikes, new taxes, or some other unforeseeable crisis is very likely to happen. If you have a short term view you only see the problems and don’t look out 20-30 years & beyond.
Analysis Paralysis:
There is so much information available these days on the net, that it’s no wonder we get stuck. We have to look at ‘one more set of numbers’, we have to make sure that what we do is going to be perfect – once you read my article & other reports. Remember to focus on the long-term and it should clear your head a little.
Don’t be afraid of debt
I’m not talking credit card and car payment loans. I’m talking about ‘good debt’ and using leverage to build your assets. When you can see what it will do for you in the long run it’s nothing to be afraid of. If you back this up with an ‘emergency fund’ then debt need not be stressful.
You don’t want to have to make lots of mistakes on your journey of investing in property, but here some of the lessons look out for.
Planning:
You need a plan. You can’t just wake up one morning and think ‘Right, let's go buy some property’. Look at the most successful investors and see how they have done it, and try and recreate it. The bottom line is that you buy under what it is worth, in an area that is about to take off, and then make some changes to the property to add value. This has been a proven system for a long, long time. You still have to decide what cities and also what type of properties to invest in, but that will all be part of your plan.
Long term
It’s more sustainable if you invest to hold. Go through all the ups and downs in the property cycles and watch the value grow. How many times have you said yourself: Damn! ‘If only, I had brought that property when I was 22, it would be worth ‘Million ‘ by now!
Did you say that?
Happened to me, so I hope you don’t make the same mistake.
Property investment is it a business not a Hobby?”
It takes time and effort to master the skills of property investing. In fact the most successful investors don’t do it by themselves. You can’t know everything, we are human after all. So pay a team of good people to help you make the right decisions. If they are helping you make money, don’t be afraid to pay them. The DIY attitude is fine for some things, but when it comes to making money, paying right people makes sense.
Don’t be “KIASU “investor
No, don’t do it because everyone else is:
The people who don’t understand property tend to get very excited at the peak of the cycle and buy, buy, buy. Then they get very depressed and pessimistic at the bottom of the cycle and want to sell cheap, cheap. Seasoned and long term focused investors do the opposite. They also understand that property works on a cycle and that will never change. If you are a good investor you know you can win in all parts of the cycle.
Same area
Buying in the same area where you live in is often preferable, especially for a new investor, as it is easier to keep an eye on the property & tenants. Driving past the property regularly will help you stay on top of any potential problems, and relieve any new-investor anxiety.
Three or four bedroom homes are usually easier to rent and normally have a quicker chance of re-sale should you need to sell any time in the future.
Low maintenance fees will help to reduce ongoing maintenance costs and gives you a better rental yield return in your investment. The maintenance fee is not something you should take lightly.
The location of the property tends to be more important than whether the property is a house or a Condominium.
Analysis Paralysis:
There is so much information available these days on the net, that it’s no wonder we get stuck. We have to look at ‘one more set of numbers’, we have to make sure that what we do is going to be perfect – once you read my article & other reports. Remember to focus on the long-term and it should clear your head a little.
Don’t be afraid of debt
I’m not talking credit card and car payment loans. I’m talking about ‘good debt’ and using leverage to build your assets. When you can see what it will do for you in the long run it’s nothing to be afraid of. If you back this up with an ‘emergency fund’ then debt need not be stressful.
You don’t want to have to make lots of mistakes on your journey of investing in property, but here some of the lessons look out for.
Planning:
You need a plan. You can’t just wake up one morning and think ‘Right, let's go buy some property’. Look at the most successful investors and see how they have done it, and try and recreate it. The bottom line is that you buy under what it is worth, in an area that is about to take off, and then make some changes to the property to add value. This has been a proven system for a long, long time. You still have to decide what cities and also what type of properties to invest in, but that will all be part of your plan.
Long term
It’s more sustainable if you invest to hold. Go through all the ups and downs in the property cycles and watch the value grow. How many times have you said yourself: Damn! ‘If only, I had brought that property when I was 22, it would be worth ‘Million ‘ by now!
Did you say that?
Happened to me, so I hope you don’t make the same mistake.
Property investment is it a business not a Hobby?”
It takes time and effort to master the skills of property investing. In fact the most successful investors don’t do it by themselves. You can’t know everything, we are human after all. So pay a team of good people to help you make the right decisions. If they are helping you make money, don’t be afraid to pay them. The DIY attitude is fine for some things, but when it comes to making money, paying right people makes sense.
Don’t be “KIASU “investor
No, don’t do it because everyone else is:
The people who don’t understand property tend to get very excited at the peak of the cycle and buy, buy, buy. Then they get very depressed and pessimistic at the bottom of the cycle and want to sell cheap, cheap. Seasoned and long term focused investors do the opposite. They also understand that property works on a cycle and that will never change. If you are a good investor you know you can win in all parts of the cycle.
Same area
Buying in the same area where you live in is often preferable, especially for a new investor, as it is easier to keep an eye on the property & tenants. Driving past the property regularly will help you stay on top of any potential problems, and relieve any new-investor anxiety.
Three or four bedroom homes are usually easier to rent and normally have a quicker chance of re-sale should you need to sell any time in the future.
Low maintenance fees will help to reduce ongoing maintenance costs and gives you a better rental yield return in your investment. The maintenance fee is not something you should take lightly.
The location of the property tends to be more important than whether the property is a house or a Condominium.
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