Securing your first investment property
If you are confused by the amount of advice out there on how to get into the property market, perhaps it is better to start with the 5 main hazards to avoid.
I’ve seen lots of mistakes that many beginning property investors make and interestingly, they can generally be avoided by following five pieces of advice.
1. Emotionally attached – it’s not your home, it’s your income
In property, it is so easy to be lured to a cute cottage with a white picket fence and all the trimmings.
If it is going to be your home, the heart of your family, go for it.
But, if you are in this to make money, you need to look past the picket fence to the cold, hard facts.
Who will your tenants be? Will they care about, and for, the manicured lawn?
Will they pay extra for the pool (enough to cover the maintenance)?
Will they have two kids and a dog?
Or would they prefer a low maintenance property they can lock up and leave without it deteriorating and costing you money in the long-term?
2. There is always another investment property
Panic buying is a common trap, often stemming from the Fear of Missing Out.
Do not let missing out on a property, factor in your investment decisions.
There will always be another property – you need to concentrate on buying the right one, not the first one you see.