Six Things to Destroy Any Property Portfolio

Before you can do everything right with successful property investing, the most crucial step is to avoid doing anything major wrong.

This is exactly where most people either get stuck, or ruin their finances for an extended period and find themselves trying to dig their way out of a financial hole. It’s not pretty.

And it can be financially devastating.

To keep it as simple as possible, I’ve narrowed decades of conversations with people all the way from the most successful, to the ones that have suffered the most financial pain when getting things catastrophically wrong, into six easily digested points for successful property investing.

Reading these back though, you know the one that cripples the most people?

To put it in perspective, you can often even do several things wrong, though still be a successful investor.

I know an investor (who requested to stay anonymous) who said they tried to:

  • time the market
  • buy in a “hotspot” (because it was promoted by a property “spruiker”)
  • purchase off the plan (heavily pushed by their financial planner – who received a heavy commission)

and suffered large losses as the market plunged shortly after.

Because they purchased:

  • in a market that wasn’t dependent on local industry
  • close to schools, shops, transport and amenities
  • when they had a cash buffer and were able to hold on for the long term

Sure, it’s not the type of property that I advocate buying, though 20 years later, their investment has long since turned a corner and made more than 200% capital growth.

Undoubtably, they would have made considerably more purchasing 2nd hand property in blue-chip areas over the same time frame, though when you look back and have made over a million dollars in capital growth, isn’t that better than if you had done nothing? Even if at one point, you had lost 20% of your initial investment?

Read that last paragraph carefully.

Want to talk things through and get it right the first time? Speak with an expert team of property strategists who are dedicated to helping clients navigate through all the murky waters. We’ve helped hundreds of clients in the past and we can help you to. You just need to take the first step and click here to organise a time for a free strategy session.

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