If you've read part one of Real Estate Investing Myths, you would have learnt that there are a lot of misconceptions around property investment. Some of these make people hesitant to build a property portfolio. In today's age, it's incredibly important to consider a range of income streams to build wealth for our future. One of these should be an effective real estate investment strategy.
In this article, we're going to provide the second half of our 10 real estate investment myths. Set yourself up for success with accurate knowledge. Don't let these common myths deter you from buying property for investment purposes.
Myth 6: Property investing means sacrificing your lifestyle
Do you like going out for a nice smashed avo and a coffee every Saturday morning? If that's part of your lifestyle routine, don't give it up!
Many people believe that when they commit to property investment they can't afford certain lifestyle pleasures that they had before. This isn't always the case. If you work with a qualified mortgage broker, you can structure your finance and home loan repayments to suit your lifestyle. REIF have expert finance specialists who ensure you're getting the most suitable rate on the market.
Myth 7: You should only invest in established properties
Yeah sure, purchasing an established property may seem like the more convenient and easy option at first glance. Though did you know that new properties offer so many benefits that established ones don't?
For instance, when you purchase a new investment property you can maximise on depreciation of that property. New properties allow you to claim depreciation items on tax. In fact, the newer the property is, the more items you can claim. New properties also carry lower maintenance costs.
When buying an investment property that's new, it will also have better tenant appeal. A good investment strategy will allow you to appeal to quality tenants. Quality tenants are generally willing to pay more on their rent for properties that have appeal. They're also more likely to pay their bills on time, elevating the financial burden that comes with tenanting out a property.
Myth 8: Young people shouldn't invest in property
If you're a young person, you certainly SHOULD invest in real estate! Especially in the current economic climate.
There are so many benefits to buying an investment property for beginners. The earlier you start investing in property, the earlier you enjoy the benefits of financial success later in life. Young people of today need to consider earning a second stream of income to support their retirement phase later in life. Concessional government incentives that the older generation have available for them today aren't expected to provide security for today's youth when they reach that time in their lives.
As a young person, it's easier to purchase property with little money down earlier on, in comparison to later in life. Especially with the grants and incentives that the federal and state government's are offering to encourage more young people and first home buyers to step into the property market. If you're a young person thinking about investing in property - ACT NOW!
Myth 9 - All debt is bad
There's a common misperception that all debt is bad. We've all been brought up to fear it.
When buying an investment property, the key is to know when and how to use debt effectively to benefit you. You can use debt as a way of making money in real estate by leveraging your savings and equity to expand your property portfolio. This can help you to generate an income, which can then be used to pay off the debt, while still leaving you with money in your pocket.
Myth 10 - Buying an investment property is time consuming
It doesn't have to be. In fact, when you have the right team of professionals behind you, real estate investing is a breeze.
While there are plenty of factors to consider regarding what is going to give you the best return as a property investor, working with a team of specialists to source the right property will ensure you've got more time on your hands. We're constantly searching for location hotspots around the country. Additionally we look for property that are going to generate our clients cash-flow. We also work with a close group of business partners, including; accountants, solicitors, and property managers who will make the process as easy and timeless as possible for you.
Reach out for a FREE consultation
If you're interested in real estate investing and building your property portfolio, we'd love to be able to assist you. For a FREE no-obligation consultation with one of our specialists, please reach out on the details below. There is truly no better time than now to make property your investment strategy. So don't wait!
Ph: 1300 130 932
Email: clientservices@reif.com.au
