Fear of making a mistake and losing money
Believing you’re not savvy enough to do it successfully
What if my property doesn’t make money, or goes down in value?
Firstly, markets ebb and flow in cycles.
Buying a property that makes money, whether immediate or long-term, is all about planning.
I don’t know the first thing about property…
You don’t need to, initially.
I don’t want the burden of more debt.
Yes, debt is daunting.
By meeting with mortgage brokers, analysing your borrowing power, buying within your means and having a buffer in place for financial emergencies, you will find that fear is often unfounded.
I can’t afford all the ongoing costs.
Property does come with ongoing costs, such as insurance, strata fees, repairs and periods of vacancy.
I don’t know how to be a landlord.
You shouldn’t try to do it on your own.
Although you’ll need to stay on top of the property’s activity, once it’s tenanted and has a manager in place, to some extent it becomes a set-and-forget asset.
Buying property is never risk-free, but the most common fears are usually unfounded – all you need is preparation and the ability to learn.
Shannon Davis is Director of Metropole Property Strategists in Brisbane and as a successful property investor and licensed estate agent, his years of industry experience helps his clients maximize the performance of their investment properties.
He is a regular commentator for Michael Yardney’s Property Update.
Read more Expert Advice from Shannon here!
Disclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property.