Invested in a dud property? What you can do next…

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In an ideal world, your first property purchase would be such a spectacular investment that leveraging into property number two becomes a piece of cake. 

In reality, investors can make a wrong turn at the beginning of their property journey, which can result in a dud debut investment. 

So how do you move on? 

Cut yourself some slack: “Understand that everyone has a dud, and if it is your first one, then at least you have it out of the way,” Margaret Lomas of Destiny Group says.

Get help: Seek out the advice of more experienced investors so you can learn from their successes and mistakes. “Mix with investors who are further down the continuum than you are and learn from others in a supported environment,” Lomas suggests.

“By surrounding yourself with like-minded people who can set an example, you will see that others have not had poor outcomes from taking the plunge, so you will have more confidence in your next property purchase.”

Educate yourself:  There’s always a chance to do things differently next time. “In my experience, most investors who have made bad investment decisions were lacking some necessary information when they made their purchase,” says Rocket Property's Ian Hosking-Richards.

“If you’ve purchased underperforming assets in the past, you need to identify exactly why the property has not lived up to expectations, so you can avoid repeating the same mistakes in the future.”

Can you afford to buy in this suburb? Find out how much you can borrow

Top Suburbs : scarborough , coburg north , thebarton , west wodonga , westbrook

  • Greg says on 22/05/2013 09:06:33 AM

    Dumb luck is also part of the investment puzzle. We bought our first investment Unit in Liverpool NSW in the 1980's and doubled our money in 18 months. Not even the developer with all their knowledge and resources who were selling the block of units saw that one coming. Our second property was a mistake due to age of 20 years old and the condition.
    Ongoing repairs due to age suck up so much of your resources. Replacing 3 fence lines, guttering, plumbing, carpet, stove, hot water service etc etc. They hit you like domino's, one after the other when you could be saving that money for your next purchase.

  • Debra says on 22/05/2013 09:18:46 PM

    This is a great article. So many property investors get 'turned off' property because they make a mistake early in their investing journey. Successful property investors make mistakes, learn from them and move on. It's good for other people to know that it's possible to recover from a poor investment and a mistake shouldn't mean you give up on property. More articles like this is just what new investors need to boost their confidence.

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