Are you thinking about starting your property investment portfolio? If so, congratulations! It is an exciting time in your life to be able to invest in the real estate market. But just as much as it is exciting, it can also be somewhat daunting. We’ve listed the 3 fears that prevent property investors from buying their first investment property and entering the market.
1. Fearing Debt
The first and most common fear for new property investors is the fear of debt. Even when you are given financial approval for $1 million dollars, many new investors only want to spend around half of that money. That is because of their fear of having debt. Instead, consider your cash flow. If you are fearful of debt, instead of looking at what you owe, look at what you are gaining from property investment. This is not only to look at the mortgage cost against the incoming rental revenue but also looking at the long term gains to be made in the real estate market.
2. Fearing timing in the market
Often when investors are looking to purchase, they are entering the market at its heightened state, as they see so many other investors making money from their investors. But instead of waiting for the “right time” to enter the market, remember that timing your purchase is only important if you are flipping a property, not if you are making a long term investment. Instead of trying to pick the right time to enter the market, pick the right asset to purchase.
3. Fearing a bad investment decision
Making the final decision to enter the property investment market can seem daunting — it is not uncommon to feel this way. The truth is making the commitment to purchase a new property and carry debt can be overwhelming at first. But instead of waiting and delaying your decision, try to address your fears head on.
Engaging a buyer’s agent is a great way to ensure you make a smart investment decision, as we at Buyer’s Agents Tasmania monitor the property daily and make purchases every week! Contact us today to start your property search.
Please note, this article does not constitute financial or legal advice. Please consult
your professional financial and legal advisors before making any decisions for