At Love Property Australia, our aim is to always be solution focused. We understand investors have worries and concerns, so we see that it’s our job to put your mind at rest.
Following are the main problems that we see or are presented to us, and our solutions.
❌ Taking uncalculated risks
You’re in a position to invest and you see an investment option that looks good so you jump in and make the most of the opportunity.
✅ Do your research
Whilst we always applaud action, it needs to be well thought out action with a strategy supporting it and research to back up your decision.
❌ Following the trends
You might have a couple of mates that claim to have a high performing investment property that are encouraging you to follow their lead, or there might be a development that you saw on holidays or in a recent drive around your neighbourhood or in a recent advertisement that looks enticing, so you follow the trend because it looks or sounds great.
Listening to the “expert” at a barbecue about their wins isn’t always the best lead to follow.
✅ Focus on your own strategy
The action that your friends have taken or the property that you’ve seen may be great options – but they may not be ideal for your personal circumstances. You need to start with the why. Why are you investing? Do you want to minimise tax, build a nest egg or leave a legacy? What’s your timeframe? What’s your budget? Does it need to be cashflow positive or can you afford to make payments every month?
Does the property meet YOUR needs?
❌ Buying over budget and not looking at cashflow
The purchase price looks great. You can afford it or you can stretch to borrow enough to cover the purchase price and it gets your foot into the investment market.
That’s great, right?
Not always…
✅ Take a good look at the numbers
Purchase price is the starting point only. What are the other costs associated? Stamp duty, conveyancing fees, loan repayments, interest rate rises, strata levies, property tax, rates, maintenance, management fees, utilities, periods of vacancy. You need to understand the very real figures that are attached to the property to make sure you can afford them if your circumstances change or if there are changes associated with the property.
❌ Investing in your own backyard
We see some investors who want to invest locally. They understand the local market, they can drive past to check that the property is well looked after, they have a mate who can recommend a good property manager. They may even be able to rent to someone they know. Surely that makes sense, doesn’t it?
✅ Broaden your horizons
Whilst you may be familiar with your own neighbourhood, it may not be the best option to meet your investing strategy and budget. Taking a look at different markets across the country or even different pockets within those markets could turn up some real gold. The first thing to look for is infrastructure investment as this is a great indicator of growth.
Our aim will always be to help you find the investment solution to meet your goals and to help you get over some of those roadblocks so that you enter with your eyes wide open.
I’d love to help you get started on your investing journey or build your portfolio if you’re already on your way.
Let me know if you’d like to chat.
