Posted on October 19, 2016 at 3:59 am
Human nature means we often follow the masses, but in real estate that’s often not the right path to take. Here are some tips to keep in mind when it comes to property investing…
1. Buy, Don’t Sell – Buy a quality property in a blue-chip area and where possible, never sell. Once you have one appreciating asset you can build up equity, which you can use to purchase your next property.
2. Buy blue-chip – As mentioned, it’s worth paying market value for a better property in a top suburb than it is to get a lower price for a property no-one else really wants. There are always better performing suburbs that retain their value from decade to decade.
3. It’s time in the market, not timing the market that counts – Don’t try to be a millionaire overnight. The real secret to wealth is compounding your investments. Aim for consistency.
4. Go against the grain – Consider doing the opposite to what everyone else is doing. Buy when everyone sells; sell when they buy. Don’t listen to negative people telling you you’re doing it wrong.
5. Don’t fear the gear – It’s perceived that debt is dangerous. Property debt can increase your return and get you a return faster. Know how much debt you are comfortable with.
6. Be passionate about your investments – Believe in your investments. It will feed your drive and keep you focused.
7. Be driven – Drive enables you to take risks that very few others would make and get you to where you want to be faster. Constantly focus on the results of your investments
8. Keep refinancing – Keep tapping into the equity in your properties to buy more properties… and maybe a few luxury items along the way.
9. Stick to your strategy – Work out what works for you. Once you develop a strategy, stick to it.
10. Don’t retire on property rents – Most people think you’ve got to pay property off as quickly as possible, and retire on rents. But often it’s the capital growth that makes the real money.
BONUS TIP – Always consult the professional experts in their field to assist and guide you with advice. We’ll put our hands up as the experts in real estate but you should always get independent legal and finance advice.
If you’d like to chat to Tania about managing your property portfolio (or first property), contact her here.