Property investment is an exciting venture and a great way to create another income stream. If you get it right, you’re in for a lifetime of rewards. If you go about it the wrong way, you may set up a few stumbling blocks for yourself.
Let’s take a look at the 3 mistakes most new property investors make during the property journey.
Lack of financial planning
When you buy a new car or plan for an overseas trip, you’ll be setting out a plan to save money. The same logic applies when you’re buying an investment property. Yet, so many people don’t plan for how much they can afford. Good financial planning means that you determine how much is needed for a property and if any maintenance needs to be done. This way, you’re not just buying a property and struggling with payment.
No long-term strategy
Having a plan will help you with goal-setting and serve as a blueprint during your property journey. Start off with why you’re investing in property. If you want to retire comfortably, then you need to determine the running costs and how much you’ll need to retire. If it’s to help your family financially, then you need to determine how much you can put into your property – financially and emotionally. A strategy will help you stay focused on what to achieve.
Creating an income stream does not happen overnight with property investment. It’s hard work, plenty of research and planning. You’ll need to have the patience to run the numbers and do your due diligence to ensure you’ll be successful.
A bonus addition to the list is having the wisdom of experts on hand. While doing research, find expert property investors who have excelled in their field. Follow in their footsteps and ask their advice.