- It’s a lovely safe area.
- Doesn’t it feel homely?
- You’ll most likely get nice tenants,
- You can drive past the house and keep an eye on it.
Never get emotional when considering an investment. I collect guitars and I sometimes get emotional and pay too much. Why? Because if I really want a guitar, I pay whatever I have to.
I don’t avoid telling mum what I pay, I just mumble sometimes when she asks.
As you’re never going to live in an investment property, you can let go of any emotional connection with it.
Conduct your research on the market and area. Stick to your investment criteria and ensure everything measures up. Then buy. Remember there are lots of houses out there to buy or build. If you don’t find on that tricks all the boxes right away, move on.
Don’t look at an investment property as if you might live in it one day. This is the biggest mistake you can make. Most investors buy within 10 km of their home ( i.e. in their own home postcode ). Why? Because they know and like the area. They go to their local estate agent. But if you rely on your local agent for a property , you ignore 99% of the viable investments.
Beware the shark. ( I’m hearing jaws music……………………..)
Don’t get me wrong; I know agents who are true assets when it comes to investing. But let’s not kid ourselves; agents always play to your emotions because that is the easiest way to sell.
If you look locally, you’ll hear comments like:
Don’t fall for any of this; it’s a complete crock!
If you do your research, you’ll know your purchase is a solid investment that meets your strategic criteria. Your mum and I own many houses that we’ve never seen. I don’t recommend this unless you have someone to manage the process for you. My team provides checks and measures that give me control during due diligence. I have confidence in my investment because I have a system to manage risk.
As mentioned earlier, I pay too much if I get emotional. Everyone does, But if you take emotion out of a decision, you can happily walk. And that means you’ll always get the best deal.
Source : the property investor, Cam Mclellan
