5 Common Investment Myths Busted

May 19, 2016

We see some common mistakes made by first time investors as they get started. Lets shed some light on them so we can avoid them ahead of time.

MYTH 1:A property will go up in price because it is cheap.

TRUTH: The actual value of a property is what somebody is willing to spend on it. Just because something is the cheapest in a suburb does not mean it will increase in price the most.

MYTH 2:What has happened will always happen.

TRUTH: If a suburb or city has increased in price very quickly over the past few years does not imply it will necessarily keep doing the same. A fast increase in price could actually have the opposite indication for the future. Market trends are important but a full picture view is necessary to forecast market movements.

MYTH 3:The more properties I own the better off I am.
TRUTH: Owning many different properties can add some diversity to a portfolio but it can also add to expenses and management time. Instead of focusing on how many you own, focus on securing investments that perform. More is not better, better is better.

MYTH 4:I only make money from a property when I sell.

TRUTH: There are several ways to get profit out of a property without needing to sell. Get some advice from professionals who have experience investing in property them selves. How you access the value in your investment all comes down to your big picture plans.

MYTH 5: I should just get started.
TRUTH: Time is the real resource we all really have so don’t waste it but that doesn’t mean jump into something without knowing what you are jumping into first. Spend your time (or hire somebody) to figure out every detail about the investment you are considering so you can avoid any costly mistakes that could have been foreseen.




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