Thinking about buying or building an investment property?
The prospect can be exciting and nerve-wracking all at the same time,
and you want to be sure you’re making sound investment decisions right
from the start.
General Manager of FinancePath
Chris Collard helps ease the stress and instil your confidence by
sharing the seven common property investment mistakes he commonly sees
people make, and he tells us how you can avoid them.
Mistake 1: Not understanding your investment purpose and goals
The first mistake Chris says many people make is failing to understand
their purpose or goal when choosing to invest in property over other
options such as shares or bonds. The question Chris asks his customers
is: “Why are you looking to invest in property, and what is the
financial outcome you are expecting?”
“If you can’t answer these questions, then you aren’t investing in
property for the right reasons, and there is a large range of other
investment decisions you could be making instead.”
The answer Chris typically hears is that people want to secure their
financial future, but he says it’s important to break this down and
understand what financial security looks like for you personally.
“For some, financial security means getting to a point where they can
replace their income, for others, it’s about having enough money for a
comfortable retirement. Understanding your purpose is about not only
identifying your goal but also knowing at what point you have achieved
“I recommend finding someone skilled enough to ask you the right
questions and help you work out your purpose because property investment
isn’t always right for everyone,” says Chris.