Waiting for the Perfect Timing or Perfect Property
In a changing market, waiting for the perfect time to invest in property may see you miss out on opportunities. The property market is essentially imperfect and has many variables. Trying to successfully time it is unrealistic and you could find yourself stuck in analysis paralysis with solid investments passing you by.
When it comes to the actual property, it is very unlikely that you will find one that ticks every one of your boxes, so you need to consider something that covers most of them. It can still be an excellent investment, even if it is not exactly as you envisaged.
If you have decided you want to invest in property and you are financially ready, you need to take action. Remember, property investing is a long term strategy and waiting for the perfect time or property can mean you miss out on properties that will see you do well in the future.
Working with a trusted property adviser can help you achieve your property goals, whatever the current market conditions may be.
Becoming Emotionally Involved in the Property
When you are buying an investment property, things that are important to you for your own home may not be as important to those looking to rent a property. It doesn’t need to be something you really like and would want to live in, it needs to be what potential tenants would be looking for. The area and property type need to be attractive to the type of tenants you are seeking. You don’t necessarily need to be in love with the property and/or the area for it to tick all of your investment requirement boxes.
Generally speaking, an investment property purchase involves business-like decision making so you need to take the emotion out of the equation.
Not Understanding the Area and the Demographics
An area may have a certain appeal to you, but it may not to renters. For example you may love a leafy, quiet suburb as a home owner, whereas a potential tenant may be looking for better access to transport, universities, or perhaps a thriving entertainment hub.
Another thing to consider is just because a property seems inexpensive, it doesn’t necessarily mean it will be a good investment. It may well be, but you want to understand why the area is cheaper and the likelihood of being able to rent the property out easily, as well types of tenants you are likely to attract.
Contact us and we can help you source a property suited to your ongoing needs and avoid these mistakes!