8 property mistakes almost every investor learns the hard way


I’ve said it before many times, and it bears repeating once more: as a property investor, you will pay for your education.house property

You’ll either pay for it by actively seeking to educate yourself, by investing in courses, seminars, and mentoring programs that help you grow your wealth.

Or you’ll pay for it by making costly mistakes.

Unfortunately, it’s the latter path that most property investors end up taking…

Whether you’re new to property investment or you’ve been a landlord for some time, it is a good idea to be aware of some of the more common (and costly) mistakes you want to try and avoid when building a property portfolio.

As they say, a smart person learns from their mistakes; a wise one learns from the mistakes of others, so here are a few common property investment blunders that you can learn from – along with some strategies to avoid them.

1. Making hasty decisions

When the property investing bug bites, it can cause you to become laser-focused on all things real estate.

This can be a real asset – but if it prompts you to get so excited about buying a property that you glide over the (really important) finer details, it can become a very big problem.

A lack of careful thought and planning can cost you a fortune so make sure you take the time to formulate a strategy, then undertake due diligence to understand your chosen market, view a number of potential properties, and interview a number of professionals before choosing who you want to work with.

2. Doing inadequate research

Along the same lines, many investors rush in and buy an investment property without doing adequate research first – and sometimes, none at all!

This is a very serious financial risk and yet investors seem to make this mistake all too often.

You need to review the property from every angle, including your prospective tenant’s.

Get an idea of the kind of people who are renting a property in this area: how much are they paying?

What types of properties do they like?

Are new or older homes more ‘in demand’?

The answers to these questions will help you tailor your investment to the market, lowering your vacancy periods.

3. Thinking like an owner

This is one of the most common mistakes made by those who are new to investing in bricks and mortar.

When considering an investment property, your judgment should be based on the perspective of the local demographics.

Avoid allowing your own personal tastes and desires to affect your judgment.

Instead, try and walk in the shoes of local buyers – those who would buy similar properties in the area as well as potential tenants and not its appeal to you at your age and stage of life.

4. Failing to consider your tenant’s desires

Think about it: the features, amenities, and mod-cons that appeal to you in your 40s or 50s are completely different from those that may appeal to you in your 20s.

So it’s important to stay focused on what your tenants want out of a property, not what you want.

5. Paying over the odds

Many investors, especially those who are new to property, are too timid to make a low offer on an investment property.


Source link

Call Us Now