The more you know about the most common mistakes that investors make, the better your likelihood of building lasting wealth.
In this series of videos, we discuss the common mistakes I’ve seen investors make.
Today we discuss how investors frequently get trapped by property marketing tricks.
If you swallow all the marketing hype we’re subjected to, it would be easy to believe that almost every bricks-and-mortar investment is a sound one.
Of course, if property investing was that easy, we’d all be multi-millionaires.
So what are some of the common marketing traps that you’ve seen catch our unwary investors?
Watch as we discuss:
- The many offers and promises out here designed get to our greed glands going.
- Don’t buying for tax reasons – things like NRAS, or getting big tax deductions, depreciation allowances or rental guarantees. In fact you’re usually paying for these up front. They’re loaded into your purchase price.
- In general avoid off the plan, don’t be lured by the marketing hype and the glossy full page ads. You have to wonder why the developer needs to offer their incentives to make a sale, when the average home seller doesn’t need to offer any incentives
- Be wary of the promise of the next hot spot and avoid properties located in the country with little potential for upside or house and land package on the outskirts of the city. The problem is that because these locations have abundant free land and a constant flow of newer properties coming to market, their capital growth rate underperforms the market. Property is about supply and demand
- Steer clear of “get rich quick schemes” or suggestions you can bypass the banks and buy properties with no money.
- or make profits through Airbnb without even owning a property
- Property investors should always bear in mind that the more marketing activity surrounding a particular property, the more red flags should go up.
- Slick marketing is no substitute for quality research. Just because the sellers and selling agents tell you it’s a great investment doesn’t mean it is.
With thanks to Michael Yardney's PropertyUpdate.com.au