There are about 2.3M property investors in Australia and these are the behaviours that deserve a gold star
- Diversifying the portfolio - there are 358 regions across Australia that have a population over 20K. Why would you buy all your investments in 1 area? Diversification should be a key part of your investing journey. Every market moves at a different pace; growth, rents, regulations and buying across multiple states will also reduce your land tax liability. The saying goes; don't put all your eggs in one basket!
- Building cashflow buffers - Just cos you've achieved your goal of buying an investment property it doesn't mean you don't need to save anymore. Buying a property is a huge achievement but now you are responsible for a mortgage, tenants, taxes, maintenance etc. Unexpected events can come up; hot water system breaking down, interest rates increasing, or redundancy. Saving is a muscle that needs to be worked on even after buying
- Yearly portfolio health checks - reviewing your insurance, interest rates and performance is all part of ensuring you're on the right track. It's a little extra life admin but getting it done gives you that extra piece of mind
- Not getting emotionally invested - I've been guilty of this before! Buying property close to you is one thing I see sooo many investors do. Often it cos they think they'll be able to keep an eye on it or it's cos they know the area but this doesn't equal a good investment. The first property I bought was a 30 min drive from my home, over 12 years I probably dropped in less than 5 times. I also held onto it wayyy too long and should've let it go to free up borrowing and funds which would have gotten me a better return