10 Important Lessons Property Investors Should Remember
Posted on February 10, 2015
One of the resolutions most people have whenever a new year rolls in is to increase their sources of income. Financial stability and independence are consistent goals of many, either out of fear that the global economy would head for a downturn again and ruin their lives, or simply the desire for a life that’s free from money worries. Whatever the case may be, these are good goals for everybody who has yet to attain that stage of financial security.
According to financial gurus, some of the best sources of income are property investments because the returns prove that, indeed, your money can work for you. If you’re seriously considering becoming a property investor this year, there are some lessons that you need to learn first so you can be sure to make the best financial move. Lauchlan Leishman has 10 important lessons that will certainly help you out.
1) Quick Isn’t Always Easy
Quick-income opportunities are rarely safe, and the common dynamic of property investing is that the returns come very gradually and you will not get a full ROI right away. Any provision that promises fast money is questionable; therefore, study your property investment options carefully and steer clear from those that have outrageous promises of fast and grand wealth (like certain development projects “in the works”).
2) Use Logic, Not Emotion
Do not make investment decisions when your emotions are high. As with most things, emotions can cloud sound judgment. So for something as important as an expensive investment, be emotionally detached and thoroughly logical.
3) Think About NOW
When analysing your options, do look into the future. Study the property market movement, ongoing community developments that may impact property values, and other “future” variables. With effective analysis, you can count that the property you purchase will be fully beneficial to you.
4) The System Works
Stick to a tried and true system. This is an effective method of minimising the inherent risks of property investing.
5) Do Your Research
The smartest property investors study provisions more in lieu of national real estate news. More often than not, the performance of the real estate industry has very little impact on how beneficial your property investment will be.
6) Make A Plan
It’s always smart to have a concrete plan for the property to be purchased; otherwise, the property will just be “on display” for a long time, and morph from being an asset to a liability.
7) Use Your Investment
Think residual income when investing in properties. Most people purchase property to rent out or develop into a business, and this is a fantastic provider of residual income – meaning money that you can look forward to every month.
8) Work The System
Learn the tax advantages of owning a property. These are perks that you should utilise once you complete the deal. It’s never too early to project yourself as a property owner even before you have a land/building to your name.
9) Be Educated
Learn more about investing per se and apply the lessons shared by investments experts. These lessons will be of no value until you use them.
10) Just Do It
Don’t let people influence your desire. If you have carefully studied the provision, have a plan for the property, have the money, go ahead and seal the deal. The longer you wait, the less committed you’ll become.