How To Stack The Odds In Your Favour?
Having been an investor for nearly 2 decades, there is no doubt in my mind that property investing is a crowded market place.
Lots of people recognise that the pension and superannuation alone, just aren’t going to give them the sort of retirement you need. More and more people are looking beyond the share market at alternative investments in the property space to brindle the gap.
Sadly however, the pitfalls within our market our vast. There are multiple industries and businesses that have sprung up to influence investors into making buying decisions, which may or may not be in their best interest.
There are a number of things that investors should consider to ‘stack the odds’ in their favour, and essentially mitigate many of the common pitfalls associated with the property market.
‘Stacking the odds’ is about identifying risks and mitigating them as much as possible. Commonly perceived risks of investing in property include:
* What if there is no capital growth in the future?
* Will I get a reasonable tenant?
* Will I have headaches around maintenance?
* What if I have a period of vacancy?
* What if interest rates go up?
* What if the government abolishes negative gearing?
* What if I have a vacancy?
All of these risks are real, but can be massively reduced by making sure you:
* Put a plan in place BEFORE you buy anything.
* Stress test all your decisions before you buy, to make sure that any risk is acceptable.
* Think about buying properties that will endure and be popular regardless of market conditions.
* Have a plan to reduce debt
* Understand the exit plan
* Keep cash reserves
* Don’t take on properties that might stress your lifestyle.
The upside of property investing can be significant, but to over look the risks is also a danger.
If you want more help, reach out today.
Here’s to your investing success.
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