In our (well educated) opinion, success in Property Investment generally comes from hard work, time and a well-structured financial setup. A lack of investment success can often come about by way of some simple mistakes and there are plenty of potential sticky points when you don’t start out the right way.
To be sure you don’t make any of these, we recommend chatting to our Property Gurus – it’s what we’re here for! In the meantime, we thought we’d put together a brief overview of the more common mistakes made by property investors …
Leave emotion at the door
Keep in mind when you’re looking at a possible investment property, you’re buying to make a profit. The numbers are the dictators for a purchase of this type, and emotional attachment should never become a part of the decision-making process. You’re allowed to love the property you invest in but let that come a distant second to the financials.
Cast your net in the right direction
Although your local real estate agent may have some nice properties in their window, they often aren’t the right people to discuss your property investment goals with. Usually agents like this have more of an interest in the seller’s outcome than any buyer, and as an investor it’s important you approach buying the right way… We at the Bzar Group are ONLY interested in getting you set up the right way – with an investment that suits your goals – we have absolutely no reason to put the seller first.
Structure your finances correctly
It may seem easiest to go to your existing bank and discuss a new loan with them, but you can very quickly limit your future opportunities going down this path that will ultimately leave your bank in control. To us, this is one of the biggest parts of property investment. Making sure your Mortgage Broker understands and specialises in property investment finance to make sure you create the very best financial structure for you … you’ll save more headaches than you thought possible, not to mention money!
We have a very short list of fantastic brokers who specialise in property investment that we trust completely. We’d be more than happy to introduce you!
Be sure, insure
You wouldn’t drive your car with limited or no insurance, so you should definitely take that same care with your investment property. Ensure you place a portion of your income aside for insurance on your asset during the planning stage. You don’t want to be left under-insured if disaster should strike – You’ve worked too hard for this. We can explain in more detail the different types of insurance available to property investors when we chat with you.
Create and follow your Property Investor strategy
Learn what you can about real estate and seek sound advice from experts like our Property Gurus. We can help you create a strategy around our combined knowledge – having the right strategy will put you in line for the most successful outcome.
Opinions don’t always count
Friends, family and sometimes even accountants may try to give you advice, which can often be incorrect even when given with the best intentions. They may even try to talk you out of a long-term investment opportunity, so it’s important to remember, you’re investing for YOUR future. It’s about you. Access the information you need to make an educated decision and get help where you need it – make sure your accountant understands property investment, we have made connections with accountants that specialise and are personally involved and understand property investment – you would be amazed at how a good accountant can elevate your property journey.
So obviously this list isn’t exhaustive, but it gives you some idea of complexity when it comes to investing in property. Our best advice, is to start learning and talking with an expert (that’s where we come in) early so that you can put yourself in the best possible position – it may happen faster than you think!