I’ve lost count of the number of stories we’ve heard from clients who have gone all-in on a property alone to only hit a roadblock that has cost them time, and more importantly money.
From clients who bought the wrong property in the wrong area, to paying well above a suitable price, and even dodgy deals with developers which have cost hundreds, thousands of dollars, relationships, and even the homes themselves.
It’s a position no one wants to be in, and you get what you pay for, but we want to limit your risk so let me share with you the fastest way to lose money as a property investor.
1 – No plan
Even heard the saying “failure to plan is a plan for failure”? This is what will happen if you don’t have a plan because buying a property is a huge investment so why wouldn’t you have a plan or strategy for growing your portfolio? Buying is one step, but what is your next, what is the purpose of buying that property, what are you trying to achieve, and does this property help you achieve this?
2 – You don’t need anyone else
Think you’ve read enough books, been to enough webinars, and watched enough YouTube videos to do this on your own? Sure, some have, but we have just as many clients who started their own investment journey only to find themselves in a compromised position and this is where panic can happen. You need an experienced solicitor, accountant, financial advisor, broker, investment strategist as a bare minimum.
3 – Believe the hype
Seems like everyone is a property investment expert, right? Your cousins, friends, aunts’ cleaner’s daughter bought it in the same suburb you’re considering but lost money, yet an expert is telling you to buy it there. Who do you believe? Or a friend has a great deal on an investment property that’s well below value price, guaranteed to make you money because a chart says so? If you followed step 2 above, you wouldn’t be stuck believing the hype, instead of making informed decisions.
4 – Buy the wrong property
What constitutes a good deal isn’t just price, but a variety of factors such as demographics, gentrification, return on investment, amenities in the home, and so on. And not all properties perform the same and that is why an investment strategist is recommended because they can diversify your investments in order to benefit your strategy, financial situation, and legal obligations.
Follow these 4 steps and I guarantee you’ll lose money, but if you want to make money, then follow our advice and get in touch because your success is our success and we’re not some property company full of salespeople. No. We’re all investors ourselves because we believe in what we say so much, we’re willing to literally put our money where our mouth is.
