There’s no shortage of investors buying poorly performing properties and nearly all do the same thing wrong
They fall into property investing
“Many first-time investors are what I call ‘accidental investors’ – they somehow fall across a property and then decide to become investors,” Margaret Lomas of Destiny Group says.
“Instead, they should decide to become investors, become as educated as possible, and then go out and source the right kind of property for their personal circumstances.”
They don’t want to do the work
If you’re not prepared to get your hands dirty with some thorough research and due diligence, you’re more likely to make a mistake – and you’re more likely to take the wrong advice. “It means you’re then relying on people selling property to provide you with the right property and education,” Lomas adds.
They don’t understand what drives property growth
When an investor doesn’t understand what drives growth, they end up buying what ‘feels’ right, rather than an investment that stacks up on its own merits. “This leads to a failure to recognise a good investment property,” Lomas says, “especially when emotions get in the way.”
They invest where they want to live
“Thinking that iconic areas or areas where they themselves desire to live will make a good investment is a common first-time mistake,” Lomas warns. “The best investments are probably areas that are yet to become popular.”