1. Buying a property close to home.
Sure, it may be a good investment, but it probably isn’t the best investment. Take your personal emotions out of the equation and start thinking about your property location/s strategically.
2. Buying at auctions.
To put it simply, paying more than what everyone else is bidding is not smart investment. Sometimes, auctions lead people to spend up to $80,000 more than the property is even worth. Never buy in the heat of the moment. Always make thorough, informed decisions.
3. Buying old properties.
Buying old means leaving yourself with very little potential to add any value to your property. Additionally, you are also lowering your ability to maximise your tax benefit long-term. Where possible, always try to buy new.
4. Buying based on emotion.
When you buy a home to live in, it’s okay to buy with emotion and personal connection in mind. However, when buying an investment property, you must absolutely buy with facts and figures at the forefront of your decision/s.
5. Taking advice from people who haven’t been there.
Don’t take advice from people who haven’t achieved the result that you want. If they haven’t been able to do it, how can they help you?
When you overcapitalize, you waste valuable money that could be better used elsewhere. For example, funds for your next deposit.
7. Selling for a simple profit.
Always remember – property investment should be long-term. Don’t buy properties to sell them instantly. Hold onto them, refinance them, save tax and watch your wealth grow.
8. Paying off debt instantly.
Challenge yourself by placing your money into an offset account, allowing you to use this money any other time.
9. Buying in regional areas with very sluggish growth.
Always buy affordable properties that will provide you with high growth and high rental return. Capital growth is the key to the creation of wealth.
10. Waiting for the market to go down.
What if the market goes up instead? For example, if you had been waiting for a market downturn since 2014, you would kicking yourself. The market is rising and those who had chosen to wait around have now missed out on hundreds of thousands of dollars in capital growth. The key is to get into the market as soon as you can afford to do so.
11. Waiting for the deal of the century.
By holding back and holding out for a “what if?”, you may pass up the opportunity of a lifetime to grab an amazing deal. Additionally, while you wait, you are missing out on many years of capital growth and overall profit. Don’t wait to get in, but get in and wait.