Many investors are chasing tax deductions and depreciation benefits when they think about property investment and will often overpay for off the plan properties, naively thinking that negative gearing is an investment strategy.
New stock always comes at a premium and has limited (if any) medium term capital growth prospects and the “fear of missing out”, can lead investors to make bad judgement calls.
Buying property on emotion makes you easy prey for property marketers and spruikers who offer “get rich quick schemes” etc.
Successful investors formulate sound investment strategies that suit their risk profile and long term goals, understanding the difference between good and bad debt and only invest in “investment grade” properties.
When becoming a property investor, at a minimum you should have a steady job with steady income that will be attractive to the banks, as well as cash stacked away to act as a financial buffer.
Don’t try and guess the next hotspots or buy property just because it is cheap.
Speak to an independent property strategist, who can advise you on finding investment grade properties in the right area as well as formulating a long term strategy for you, that fits in with your goals.
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