If you want to build wealth by investing in property, then it stands to reason that you would be interested in learning about the top 5 mistakes that property investors make. I have observed these over the past 15 years. I have written a lot about the perils of buying the wrong property and tried to make the point that “asset selection” is critical. I’ve said many times that if you want above average returns, you must invest in above average quality assets. However, apart from that, what other mistakes do investors make? This is the subject of my presentation below.
Of course, if you have any questions about this presentation or if you would like to have a confidential chat to explore how we might be able to work together, please contact us.
Summary of 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.
