Want to avoid some of the common mistakes property investors make?
And, I’m not talking about buying the wrong property – that one is too obvious!
Well…today, we discuss the top 5 mistakes that property investors make, those that have nothing to do with buying the wrong property with Stuart Wemyss director of ProSolutions Private Clients.
If you want to build wealth through investing in property, you’ll learn something from the mistakes that others have made so that you don’t make the same ones.
Of course I’ve written a lot about how to choose the right property – an “investment grade property.”
So let’s assume you have found the right property.
There are still many things that you can get wrong.
Today’s episode should help you avoid some of those mistakes.
The top 5 mistakes that property investors make:
- Not undertaking proactive tax planning before investing in property means you most likely pay a lot more tax than necessary (consider income tax, CGT and land tax).
- Not proactively managing your borrowing capacity and bank valuations which means you hit a “brick wall” and cannot continue to grow your investment portfolio.
- Wasting time investing in the wrong assets or adopting the wrong investment strategy that are fundamentally flawed and were never going to work.
- Trying to time the market. Waiting for “signs” or “indications” that it’s safe to invest now (these will never appear).
Worrying about inconsequential issues and not taking a long term view.
- Not starting with the end in mind i.e. not understanding how you invest today will impact on your ability to achieve your longer term lifestyle and financial goals.
You must work out if your proposed action will help or hinder your ability to achieve your longer term goals.
Links and resources:
- Michael Yardney
- National Property & Economic Market Update Promo Code: Podcast
- Stuart Wemyss director ProSolutions Private Clients
- Episode 1: What Makes an Investment Grade Property | Become the Pilot of Your Life, Not the Passenger
Our Favourite Quotes:
“You shouldn’t be buying property for tax savings. Tax savings are just the cream on top.” Michael Yardney
“You should get some structuring advice before you buy your property. Once you have purchased your property, it will be a bit too hard and expensive to change.” Michael Yardney
“It’s always a difficult balancing act when you first start off because your priorities and finances take precedent, but you should always take a long-term view.” Michael Yardney
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