Did you know that out of 2 million Property Investors in Australia, only around 18% are able to invest in more than two properties at once? And only 1% are able to invest in more than five properties! Perhaps this is why the property investment industry looks so lucrative. So why do people fail at property investing?
Many things contribute to a Property Investor’s failure, but we think that these three mistakes are easily avoidable.
Being Too Selfish
Property investing involves a lot of money, therefore, most people look for the “perfect” deal. When it comes to real estate, rather than purchasing property on personal preference, you should prioritize the need of the target tenant! Being too selfish will likely lead you to fail at property investing.
Not Having Enough Patience
How many times have you heard “patience is a virtue?” That’s because it really is, especially when it comes to property investment. Real estate is a long term commitment, and patience is exactly how you’ll survive in this competitive industry without suffering huge losses.
Most of the people who fail at property investing fail because they’re looking to flip the property for a short term profit. If you’re looking to enhance capital growth, then you’ll need to hold your property for at least 7 years.
So be patient! The finances will follow.
Not Doing Your Research
Research and analysis are oftentimes overlooked. If you are thinking that your property investment transaction will get completed quickly, then you need to overcome this misconception. If you don’t do your homework, most of your real estate decisions will not go over well. Never make any deal in real estate without doing the math because this industry is dominated by people who are good at analysis and who are very patient.
If you are actually serious about investing in property, then please take these three things mentioned above to heart. There are many other mistakes that will cause you to fail at property investing. That’s why we are here! Speak to our experts today to do it right!