The 11 Biggest Mistakes Property Investors Make

The 11 Biggest Mistakes Property Investors Make 

 

  1. Buy a property near your to home. it may be a good investment but it may not be the best investment
  2. buy at auction (paying more than everyone else that are bidding is not smart investing, sometimes you can spend over $20,000 more than what’s its worth)
  3. buy an old property with no potential to add value and doesn’t maximise your tax benefit
  4. Buy base on emotion. When you buy a home to live in you buy with emotion, you must like the kitchen, the bathroom, the bedrooms etc. But when you buy an investment you buy with facts and figures
  5. Don’t take advice from people who haven’t got the result that you want. If they haven’t done it how can they help you?
  6. Don’t overcapitalise (a waste of money that you could use as a buffer for rainy days or could be use for your next deposit)
  7. Sell to realise a profit rather than to refinance, save tax and let it grow to make you more wealth
  8. Pay off debt instead of putting money in the offset account, and you can use this money anytime
  9. Buy in regional areas with very sluggish grow, instead of buying affordable property that gives you high growth and high rental return. Capital growth is the key to wealth creation
  10. Wait for a market to go down (what if it goes up instead?). If you were to wait for a market downturn since 2014 you would be kicking yourself because it’s on a rising market and you may be missing out on $100,000, $200,000+ in capital growth. The key is to get in now if you can afford.
  11. Wait for the deal of a century (you may pass up many other great deals while you wait, and you miss out on many years of capital growth while you wait. Don’t wait to get in, but get in and wait.

Sang Duong

Sang Duong started with an empty hand and drove a $500 Hyundai car. At the age of 25, Sang joined the property investment industry. Since then, he has ridden the property boom and survived the downturn. He has a portfolio of properties located throughout Australia. His passion is to share his property knowledge and wisdom to property investors.

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