Three Common Property Investment Mistakes When Buying Property 

As I have always said the investment potential using property as the vehicle is always a very lucrative option, even when the market is in what is known as a bad cycle, it is possible to still make your property investments work for you when buying property.

I know that a lot of people who invested in property are feeling the brunt of their investments in these troubled economic times, but this is not due to the market but rather to the way in which they chose to invest when the market was booming and it was easy to predict. The situation which they find themselves now, as I teach my Property Pro Investment Home Study DVD Course students, is a consequence of their own actions and their failure to make calculated risks and take responsibility.

Below I am going to list 3 of the main reasons or mistakes which property investors tend to make which affect the positive growth and sustainability of their investments. If these 3 mistakes can be avoided, then the chances of building a sustainable property portfolio increase dramatically.

1.      Risk Management

Far too many people are ignorant as to how to go about managing their risks when it comes to property investment. In my Property Pro Investment Home Study DVD Course I stress the importance of taking calculated risks to my students. I have systems and tools in place by which I am able to do very accurate risk assessment for any given property investment which I make.

This enables me to know how my investment will react in the worst case property market scenarios and by being able to simulate these conditions I am able to see whether I will be able to sustain this investment and still make money no matter what happens in the market.

I also put the correct financial structures in place such as trusts and companies so as to be able to take the best advantages I can from tax benefits and also to protect my other assets should this investment not turn out the way I planned.

Knowing how to calculate your risks is an essential when it comes to property investment and this is one of the main reasons why I developed Property School, so as to give my students the tools and knowledge which they need to be able to invest wisely and safely.

2.      Property Choice

Yes it is a fact that most property will increase in value over time, but the true art is being able to select those which will show far higher growth rate than the average property.

Too many people will allow emotion rule their property investment decisions and it is for this reason that they will often be blinded to other opportunities which may be present purely because they let their personal emotions rule their decisions and they neglect to do the calculations and risk assessment.

Yes it might be great to purchase a property close to where you choose to go on holiday every year and there is nothing wrong with doing so, so long as you have done the calculations and are sure that the property has the required growth potential.

Choosing the correct properties for your investment will greatly increase the speed at which your investment vehicle travels, enabling you to grow your portfolio far quicker and in a sustainable way.

Here is a tip which I share with all of my Property Pro Investment Students, rather than look for the correct property, look for a motivated seller.

3.      Plan Your Investments

I personally do not understand how people can expect to become financially free when they spend more time planning a weekend away than what they do on their own financial planning. To do effective financial planning one needs to have definite goals, strategies and systems in place.

It is for this reason that I developed systems such as the Formula For Riches, Property Pro Software Program and my Bond Calculator. Using these tools I am effectively able to do my financial planning and in doing so reduce the risk to my financial freedom.

I have found that there are generally four types of people when it comes to investment.

·         Those who never invest

·         Those who don’t invest enough

·         Those who invest more than they can afford

·         Those who do correct planning and invest the right amount with reduced risk

It is the people who fall into the last category who have taken the time to invest in themselves first and gain the knowledge to be able to do efficient financial planning who stand the greatest chance of being able to achieve financial freedom.

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