We chat about the various aspects of the planning and execution that can go wrong. From horribly wrong, with losses incurred, to subtly wrong, with resale threatening an investor's profits, here are some of the common things that investors get wrong:
- Buying in the wrong location
- Buying the wrong property and paying too much
- Buying with the wrong people
- Buying for the wrong reasons
- Buying with inadequate planning
- Buying an investment property for the wrong reasons
Property can be such a powerful asset class, but we’ve seen plenty of people make mistakes buying for the wrong reasons. It happens often! We'll chat in detail about the following mistakes:
• Buying for tax benefits – depreciation and Land to Asset Ratio
• Buying due to social pressure
• Buying for children
• Buying a holiday house
• Purchasing a home for your future self
• Buying with the idea of getting rich quick
You may wonder what’s wrong with some of these! We will dive into why they’re pitfalls.
We also share four ways to manage risk:
- Manage debt – ignorance is not bliss when it comes to financial obligations! Be familiar with the lender(s), terms, and repayment status of your liabilities.
- Stop worrying what others think – spending on stuff that isn’t really needed rarely helps the cause, so don’t go broke trying to look rich.
- Read widely – educate yourself. Try to challenge your own preconceptions.
- Diversify – the future is far less predictable than we tend to think, therefore all your eggs should not be in one basket.
Cate and Pete believe that the best time to sell property is never – provided you buy the right property in the first place. The Buy Right Approach to Property Investing will help you to achieve a passive income and financial freedom through investing in Australian property. Cate and Pete’s industry knowledge of Australian property investing shines through with detailed reflections on a multitude of investor successes and mistakes. Importantly, they outline what’s involved in buying the right property, which includes:• doing your due diligence on areas, properties and price• researching historical capital growth and performance• calculating your return on investment• adopting a cautiously optimistic outlook and long-term view • managing your risk. Their mission is to demystify much of the jargon in the world of real estate and enable readers not only to better understand and relate to property investment goals but to embrace their confidence and take sensible, well-informed action. Link to the book Join our facebook group here To join their inner circle, check out their book page or facebook page here: www.cateandpeteproperty.com.au
