November 1, 2019
Accrue Real Estate
The 3 most common property investment mistakes
If done right, property investment can be integral to financial success. Yet, plenty of investors underestimate the importance of being informed and make poor purchasing decisions.
Like any investment, multiple factors determine whether it performs well or no, such as interest rate changes, economic changes or fluctuations in supply and demand.
With due diligence – including research, a long-term strategy and expert advice – you can be better placed to climb to the top of the property ladder. With that in mind, here are some common property investment pitfalls to avoid in order to win big.
Mistake #1. Trying to do it all yourself
New investors often believe they can manage investment properties themselves, but this can be to their detriment. Hidden issues and fine print can go under your nose and you could be blindly signing into a bad deal.
Trusting your gut may serve you well in certain scenarios, however with property, it can mean you ignore clear indicators that determine the longstanding value of the property, such as local employment drivers or population growth.
Mistake #2. Not having a strategy or conducting proper research
As they say, failing to plan (or strategise) is planning to fail.
To make a good decision, it’s crucial to have the full picture of your financial situation and objectives. By engaging expert advice, you can begin creating your strategy and conducting research on a property with the greatest growth potential. When it comes to property investment, knowledge is power.
Mistake #3. Thinking short-term
Property investment is not a get-rich-quick scheme – nor is it something that should be done on a whim. The property market is always subject to peaks and troughs, which can make it difficult to turn a profit in the short-term. That’s why it pays to take a long-term approach.
Buying an investment property presents exciting opportunities, such as taking advantage of compound growth. Compound growth is like double-dipping on savings or earning interest on your interest! Unlike standard bank interest, you earn interest on the money you deposit and on the money you’ve already earned.
Trust in the property investment experts
To devise a long-term plan that will help you benefit from buying an investment property, trust in our team of experts.
Join the scores of buyers we’ve helped achieve long-term financial success by contacting the Accrue Real Estate team. We’ll get you started on your path to lucrative property investment.