Find out Why MOST FAIL in Property Investing ?
Did you know there are currently over 2 million property investors in Australia? Though this number may seem significant, statistics reveal that the majority struggle to maintain or grow their success after initially entering the housing market.
………………In fact, only 18% of these investors own two properties, and less than 1% own five or more, highlighting the challenges many people face when trying to build a profitable portfolio.
I have a simple but effective theory on building a portfolio, but I, like many others had to learn the hard way !
Although any asset is an achievement in itself, success to most property investors is really determined by their ability to continue purchasing real estate. Unfortunately, so many Australians save for their entire working lives to be able to afford an investment property, but very often once they achieve this, their progress remains stagnant because they aren’t sure of what to do next.
Here at DDP that is what we specialise in………Helping others continue to grow financially.
Through building my own portfolio, and having helped DDP clients purchase 1000’s of properties, I’ve learnt that continuing to succeed at property investment has absolutely nothing to do with luck. Instead, it is influenced largely by one’s mindset.
Through my own expansive journey in the property world I have Identified the four most common attitudes that cause people to ultimately fail at property investment:
· Being selfish. When a person is investing such a large amount of money it’s natural for them to want it to be something that they consider ‘perfect’. When it comes to real estate however, rather than purchasing a property based on personal preferences, it’s crucial to prioritise the wants and needs of the target tenant. If an investor puts themselves first they not only decrease the pool of prospective tenants, but they also risk making emotionally-charged decisions.
· Impatience. When it comes to property investment, patience is definitely a virtue. Real estate is a long term commitment, and a common example of an investor failing to reach their target financial outcome is when they lack patience and flip the property for a short term gain. In order to increase capital growth, and guarantee rental advances, a property needs to be held for at least 7 years.
· Hesitating. Countless investors experience ‘analysis-paralysis’ and overly scrutinise any potential purchase to ensure the property is ‘perfect. Although it’s always important to make an informed decision, if the correct due diligence is done and the return is solid, it’s important to buy without too much hesitation to avoid missing out.
· Doing it alone. In order to cut costs many investors attempt to find, purchase, and manage a property alone. Although this is possible, for most, it results in failure or having to spend more in the long-run to rectify problems that arise. To guarantee success it’s important to enlist the help of professionals who can ensure the entire process runs smoothly and with the investor’s best interests in mind.
Many people avoid investing in property out of fear of failing. However with the Australian real estate prices historically doubling every 7 – 10 years, with the right mindset it can be extremely profitable.