Some mind tricks that stops us from investing.
1. What if ending up with wrong property?
There’s no substitute for research here – buy a property in an area where you know it can be rented, and where capital growth is likely. Remember, too, that property is a very forgiving investment – There are clients who’ve made every mistake in the book, and they’ve still made money.
2. What if a problematic tenant – or can’t get one?
Make sure you have landlord insurance set up which will cover you for damage or loss of rent. You should also line up a good property manager as soon as possible – ideally prior to settling – to help you get a tenant in as soon as possible, and to do the hard work of tenant screening, lease agreements.
3. What if I end up losing money?
Be proactive about adding value – consider renovations, even if it’s just repainting and putting in new carpets. Take control of your asset – don’t just leave it down to market forces.
4. What if I due with mortgage payment?
Get your finances in order before you start investing: principally, make sure that you can cover the payments, and that you’ve got a cash buffer to cover you for unexpected circumstances. You should also get acquainted with techniques to make things more affordable, such as negative gearing and depreciation allowance.
5. What if it ends up a scam?
Again, this comes down to research. Scams typically trade on ignorance: as long as you are thorough about investigating your chosen areas, you should be fine. And remember, if it seems too good to be true, it probably is!