If you’re looking to invest in property, there’s a good chance you’ve come across some common myths about the process. And if so, it’s possible that these myths have deterred you from exploring the option further and have held you back from purchasing your next investment.

But just because something is commonly thought of as true doesn’t mean it is – and when it comes to property investment, there are plenty of common misconceptions out there that simply are not true.

So, let’s take some time to debunk some of these myths so that you can make an informed decision about whether this investment strategy is right for you (or if you’re already an investor, this could help you to continue on your journey)!

You Need a Lot of Money to Start

You do not need a lot of money to start investing in property. Many of our clients use equity from their home or their investment portfolio to use as a deposit and to cover purchase costs (stamp duty, solicitors fee, funds to cover interest during the construction).

You Can Only Invest in Property

Most people are familiar with the idea of investing in property and assume that they must only buy a property but you can invest in many ways. Shares, bonds and even gold are all examples of investments that you could make, alongside a success property portfolio.

Many of our clients also invest using a self-managed super fund. More and more Australians are getting their money to work for them by using super to buy property.

Real estate is just one way for investors to diversify their portfolios between assets with different levels of risk and return potential.

You Need to Know the Market

There are plenty of professionals out there who can help you with your investment strategy, so don’t be afraid to ask for their advice and expertise. You can also learn from their mistakes – trust me, I’ve made more than my fair share of them when I first started investing at 18 years of age.

If you’re committed to investing in property but have no idea where to begin, we can help.

It’s all About Location

Location is very important. You want to be close to amenities and services such as transport and childcare, as well as having good schools nearby.

However, if you are looking to build wealth through property, then the location is just one factor. You will want to source a property in an area with potential for good capital growth, have a huge demand for high-quality rental properties so being located in an area with low vacancy rates is key (don’t invest in an estate full of rental properties).

This will ensure a hassle-free experience, earning good returns on your money!

You Can Get Rich Quick

If you want to make money in the property market, you need to take a long view. While investing in property can be rewarding and yield steady income over time, it’s important to remember that it can take some time for your profits to build up.

While other investments such as stocks may give you high returns right away, when you invest in property there are no quick wins here.

You Must be an Expert Negotiator

You don’t need to be a skilled negotiator to buy property. When working with us, we take care of this for you.

The Banks Will Always Say ‘No’ to You

You may think that banks will always say ‘no’ to you, but this is simply not true. If you have an excellent track record of paying back your loans on time, then they are more likely to give you a loan because they know that they can get their money back with interest as well as make some profit on top of what they already have in their accounts.

However, we always recommend using a broker, someone who specialises in investment debt because your own bank will say no, for various reasons but many other lenders will say yes.

Also, if you already have a home loan it is essential to regularly review your home loan to ensure it is adaptive to your changing circumstances and the ever-changing economic climate. Read our very popular blog HERE for more information.

Property is Riskier than Shares

If you are considering investing in property, the idea that it is risky probably springs to mind. However, property investment is widely renowned as being a stable and reliable asset class.

While there are risks associated with any form of investment, the property has some key advantages that make it comparatively low risk compared to shares or other traditional assets such as bonds.

The value of your property will always increase over time, when buying the ‘right’ property and you can leverage it well. The bank will lend you up to 90% of your equity on your home to invest in another property which means in the eyes of the bank, property is a safe investment.

!!DON’T BE DETERRED FROM INVESTING BY MYTHS!!

Don’t let myths about property investing deter you from exploring this option. They are simply not true.

You can start with a small investment and build it up to something bigger if that would be more comfortable for you and we find that many havn’t invested before because they simply don’t have the education or understanding of how it all works.

There are many ways to invest in property and you can learn as you go, or just leave it to the experts who have been in the industry for years!

Leonie has been educating, empowering and inspiring humans globally since 2009 to fast-track their financial freedom safely and securely, to get the best results from their financial decisions.

Property investment can be a great way to grow your wealth over time, but it does require you to take action. Don’t let fear or misinformation hold you back from exploring this option!

If you’re looking for a property investment that will help you achieve your goals, we can help. Contact us today – email leonie@wealthology.com.au or call 0423 465 038 and speak with her directly.