As experienced Buyers Agents, we regularly meet people who want to invest in property but struggle to take the final step. While there are many reasons they put off taking the plunge, it usually comes down to a few key concerns. Here we look at the five biggest roadblocks to people investing in property and how you can overcome them.
#1: Fear of making a mistake
Buying a property is an expensive exercise and many prospective investors worry a wrong decision could cost them dearly. This can lead to analysis paralysis, where people get stuck at the research stage and never proceed with a purchase. Instead, they watch many great investment opportunities pass them by as they “carefully consider their options”.
The best way to overcome this is to come up with a clear investment strategy before you start looking at properties. This will provide a framework for making investment decisions and should help spur you into action. It will also support your research efforts, making it easier to assess whether a property suits your situation and goals.
#2: Fear of debt
From a young age, most people are taught that debt is bad and should generally be avoided. This can make the prospect of taking out a large loan, like a mortgage, seem unnecessarily risky. But, given the cost involved, most potential investors cannot afford to buy a property without some form of financing.
The best way to overcome this is to properly understand what signing up for a mortgage actually involves. It is also important to focus on what taking on this debt will allow you to achieve. You may also want to consider ways to minimise your debt, at least initially, like by targeting cheaper properties.
#3: A (perceived) lack of money
Many people assume that they do not have enough money to get into the market. This is usually based on the belief that an investor needs hundreds of thousands of dollars in savings to buy a property. It often also reflects a narrow view of what their first investment property should look like.
The best way to overcome this is to consider all the options that are available to you. This may mean focusing on a different property type or location for your first investment, or leveraging other forms of equity. A good buyers agent (like Search Party Property) or mortgage broker should be able to help you identify suitable alternatives.
#4: A lack of support
If someone close to you is sceptical about the power of property investing, it can seriously slow your investment journey. Whether it is a partner, family member, or close friend, their negative view can impede your decision making.
The best way to overcome this is to do your own research and empower yourself to make your own decisions. It is also important to have a clear view of your goals and how property investment will help you achieve them. This will equip you to educate those in your life about how investing works and what it allows you to do.
#5: Trying to time the market
Many potential investors believe that the natural market cycles can be predicted and capitalised on. This means waiting until the market “bottoms out” before buying, so they can get the most for their money. It also means holding a property until the market hits its absolute peak, so they maximise their capital growth.
The best way to overcome this is to understand that the right time to buy – and sell – is whenever you are ready. While the market does move in cycles, there are always great opportunities to be found. As such, finding success as an investor is more about the properties that you buy than when you buy them
Want more information?
If you are interested in getting into property investment but are struggling to make the first move, call Search Party Property. Our team of investment experts can help you come up with a tailored investment plan and support you to put it into action. Book your free property investor assessment session today to get started.