When it comes to buying property as an investment there are plenty of reasons to take action, but there are just as many reasons to hit the pause button.
Everyone tells you to invest in property, but maybe it’s not right for you.
In this interview on Sky News Real Estate I explain the common reason many property investors fail and some good reasons why real estate investing may not be right for you.
Most property investors fail. What do you mean by that?
Most never get the financial freedom they were looking for:
Of these 2 million or so property investors in Australia:
- 71% own just one investment property
- 19% own two properties
- 6% owned three properties
- 2% own four properties
- 1% own five properties, and
- 1% own six or more investment properties
So why do most investors fail?
- buy the wrong property,
- don’t have a plan,
- don’t have the right finance to see them through
- Invest for the wrong reasons
What are the wrong reasons:
- Buy to save tax – negative gearing, depreciation etc
- Fear of Missing Out – desperate, emotional
- Want to get rich quick
- Don’t really understand how property investment works – end up buying emotionally
- Not financially fluent – don’t know how to budget
- Looking for a multi purpose property – holiday home retirement home PLUS investment
- Finances are not in order
- Don’t have enough money to buy an investment grade property.
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