In recent years Property Investing has become a hot topic of conversation. You seem to hear it all around you, or at least know people that are getting into it. You start thinking that perhaps you should dip your toes into it too, why not? Everyone else is and you don’t want to miss out!
While Property Investing is a great way to achieve financial wealth and security, as a new investor a DIY approach should be done with caution. Here are three common pitfalls newbie investors should be aware of:
1. Misjudging Market Conditions
While the whole idea of property investing might seem straight forward – buy a nice house in a good area, rent it out – voila! Right? The reality is that Market conditions are much more complicated than you think. You run into the risk of either over researching to the point where you are overwhelmed with so much data that you wait too long, or you might just jump at an investment that seems right at the time without analysing the long-term growth of the location and property.
2. Emotional Assessment of Properties
Naturally, when we look for properties, we tend to prefer homes that we ‘want to live in’. When it comes to investing however, it is important that you take a step back and view yourself as the ‘investor’ and not the homeowner. Analyse the property in terms of location, suitability to the demographic, and potential for long-term growth. When it comes to improvements or upgrades, go with what is necessary and practical rather than what you ‘want’ so that the overall value increases.
3. Conflicting Advice
Mention the words Property Investing, and every friend, neighbour and relative will tell you that they ‘know something’ and offer you a piece of advice. It’s not uncommon that you end up with a plethora of advice that becomes conflicting, to even downright unhelpful. This is where you need to exercise caution and be weary of misleading information, even if it is well intended. Do your research so you don’t fall into the trap of blindly following non-professional advice.
Indeed, there is no better time to Invest than NOW – but do so with care! Property Investment should not be seen as a simple DIY project. Avoid the pitfalls of DIY investing by consulting with Invest Hibbards Property Investment Services to save you time, stress and money.
Here is how Invest Hibbards can help. Our team of professionals have the skills and experience to bridge the gaps between investor desire and optimum outcomes by delivering comprehensive property solutions proven to maximise growth. Not only do we identify where and when to buy, we also provide detailed property options. We help you research the market, select the property and build your professional team of experts so you don’t lose sleep over conflicting or unhelpful advice.