One of the most misleading aspects of property investment is the numerous misconceptions and inaccurate information novice investors fall into the trap of believing. As a result, first-time investors often make irreversible mistakes, costing them money, time and potential investment success. In this article, we take you through the most widespread investment property myths, debunking these inaccuracies and providing you with the realities of making this style of investment decision.
Myth: You need to be a homeowner already
When buying an investment property, there are no restrictions based on your previous buying experience or your current property portfolio. Whether your first property purchase is your own, an investment or a combination of the two is entirely your choice.
This information is distinct from any advice you may receive; an investment property expert may advise you to buy your own home first, based on their investment style, or from the details of your situation. However, it’s important to remember this is simply advice and not a genuine restriction stopping you from becoming a property investor first.
Myth: You need a lot of money to get started
While property isn’t the least expensive form of investment style, you don’t need to be a millionaire to join the property investment market. With property choices available for all budgets and a wide range of financial housing loans, any amount of start-up capital is enough to begin your investment journey. However, it’s essential to realise the potential of your reach based on your budget; seeking the advice of professional investment property experts is necessary so you can accurately gauge if your financial status is conducive to begin.
Myth: Housing is a better investment
Most people assume buying a house as an investment property over units, townhouses and apartments is a better investment strategy. However, this is far from the case, and houses have just as equal potential than any other property type. The key to a successful investment property is about location and demand; well-researched properties in profitable areas, with high demand and growing infrastructure, trumps the size and structure of any house.
Myth: You can only buy in your area
While a lot of investors like buying property close to them, for easy maintenance and security of the property, there are no restrictions to where you buy an investment property in Australia. Whether it be interstate or next door to where you live, the freedom is entirely yours. As we mentioned before, you may receive advice that encourages you to buy near you; however, you are not legally obliged to do so.