Four Things You Should Know About Property Investing.
We at Positive Property Solutions often talk about the importance of having a mentor. Your mentor or guide is a great person to have as part of your property investment team. We know mentoring is important because it saves you a long, and often expensive, trial and error phase of learning and “paying your dues.” With our clients, we mentor and guide you every step of the way with advice and information about what kind of property and where to buy. We also provide advice on how you can maximise rental returns. Among other things, the great part about all having experienced Property Mentors is that they have already been there, made the mistakes and are now well positioned to advise clients, friends and family about how to get ahead.
The best part for clients is that they can then go and get involved in property investment using sound advice, and knowing that before they’ve even started, the risk of making a mistake has been greatly reduced!
So whether you already have a mentor for your property investing or are going at it on your own, you know that the right advice can make a huge difference long term. Here are the top four things you should know about property investing:
New is best!
Amateurs often get caught up with old wives’ tales and who tell them that there is great money in fixing up cheap old houses. A common mistake many make is over-capitalising or renovating rundown houses. This defeats the purpose of having an investment in the first place as it now takes up your time, and time is money. The longer your property is not making you money and being rented out, the longer you have to wait to see any gains. The smart investor knows that a new property is best, allowing tax breaks and easy rentability from day one.
Having a plan right from the get-go
Many people are confused as to what their goals actually are and why they want the investment property. The investment property is just a vehicle for a passive income. Where it is and what it looks like are not as important as it being cash flow positive and ensuring it makes you a profitable return with good capital growth. If you are clear that you want to retire financially free, then following Positive Property Solutions can assist you with the right information on the hot spots, and get you well underway to securing the right property for your individual situation.
Don’t make the mistake of only buying in your local area
This is a classic mistake that many people make. Becoming educated about where the right place to buy at the right time, is all part of learning. At Positive Property Solution we do all the research for you, as timing is everything we understand the importance of knowing the facts of which states are rising.
Don’t be scared of debt, using your equity properly
Often people grow up hearing about debt as being bad, and can never shake the stigma, or realise the difference between good and bad debt. As a result many avoid being in debt as much as possible. Fear of debt means missing out great property opportunities that now would be very lucrative indeed. Knowing the difference between good debt and bad debt is crucial, with the knowledge that it is going to pay off big in the long run.
If you’re looking for advice about property investment and would like to speak to someone about any concerns you may have, or if you have questions, call the team at Positive Property Solution for a consultation on 1300 883 631