There are many chances to be misled along the winding, often convoluted path that is property investment. Whether you’re looking to buy or sell, often the parties you are dealing with tell you anything to try and convince you one way or another.
Before going down the property investment road, the most powerful tool you can wield is knowledge. Prepare yourself with a little due diligence and your story will have much better chance of ending in success. Here, we want to bust five common myths about property investment.
You need a nest-egg to invest
Although it certainly wouldn’t hurt, there are still options available to those without bulging bank accounts who wish to invest. A good first step would be to talk with a representative to see if you qualify for a BOQ Homeloan. Depending on your past credit history and current financial and employment situation, you may be surprised to see how many options are available to you. These options can be explored with a financial adviser, are often flexible and able to be adapted to the customers’ needs. If you already own a home, the equity that you have built up can be a strong point in your favour too.
There is too much risk involved
Nearly every investment out there is accompanied by some level of risk. However, investing in property can be fairly safe. It simply requires you to take the initiative and learn a little bit about the market climate where you intend to invest. A whole host of tools exist for finding property appreciation rates for specific areas, availability of good candidates for investment and what it will take to get the most out of your investment.
It’s best to buy where you live
This certainly could be true, but don’t think this is your only option. Don’t only think outside of your neighbourhood, think outside of your city or even country. You might feel a sense of security if you invest in a property close by, but there is a good chance that there are other places in your city or a nearby one that have amazing potential for investment opportunities. Think logically. If you are searching for a prime area for investment, take a look at the factors that would influence market values. Has the area already reached its prime? Is there industry or other economic reasons that will be influencing the market? These are the questions you want to find the answers for.
The newer the better
Sure, a brand new house might have all the latest and greatest in home building technology, but older houses have a character and style that it is hard to find. There are a whole host of upgrades whether it be electrical, plumbing, insulation or remodelling that can quickly revitalise an existing structure. Having a open-mind and some imagination can help you see past worn facades to the hidden charm.
The bigger the better
It’s not only large families shopping for spacious houses. A typical scenario entail a young couple just approved for a Clear Path Home Loan from BOQ, and instead of looking for the most floor space out of their money, would prefer to sacrifice quantity for quality. Smaller dwellings are not only becoming more popular, they are becoming trendy.
If you have been entertaining the idea of breaking into the property investment market, make sure that the preconceived notions you have regarding this promising path don’t lead you astray.
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