Let me answer that by quoting Warren Buffett, one of the world’s richest men who said; “Never invest in something you don’t understand”.
No-one ever said property investment was easy, and if they did I hope you asked them what qualifications they hold to make such claim.
To invest in property the number 1 rule is to have a sound strategy and stick to it! There simply is no such thing as a get rich quick scheme.
Yes, you may come across a fantastic opportunity every now and then, but the reality is that someone with more experience will always get there first as they are already ‘in the know’ long before the project hits the market.
The proven method we use at TIPS is to look at a number of forces that come together which give a property the best chance of being a good investment over the long term; making a quick buck never comes into our calculations.
Three years ago there were many so called property gurus floating around who claimed to be the experts. They offered to turn everyone who attended their seminars into overnight millionaires. Lines like “I made $1 million in 2 years and started with no deposit” or “buy 4 properties worth a $1 million dollars in 2 years” ….. BLAH BLAH BLAH.
Here’s a saying I really like; “A rising tide lifts all ships”. In other words, when the property market is booming then all properties will rise. One thing to remember however is that what goes up will always come down in time and that’s when trouble starts if you haven’t planned for success.
Let me quote Warren Buffett again, and I love this one; “Only when the tide goes out do you discover who’s been swimming naked”.
First time investors beware
Headlines everywhere are telling us that property prices are falling and bargains are out there with areas hitting real lows right now. This is a dangerous time for many first time investors because some go out and buy a property thinking they are getting a bargain because it’s deemed to be cheap. This may be the case, however what is your strategy and does the property fit that strategy?
Remember rule number 1; Have a strategy and stick to it! Most first time investors buying property without help don’t complete the must have research needed before buying the property.
So what type of property do you buy, where do you buy it and what will it cost?
The answer is simple, I don’t know…
That is until we sit down with you and have a chat to work out what’s best for you and the strategy or course that you want to follow. No one person is the same and that’s why we don’t conduct seminars. Instead we work one on one with each client and in conjunction with your accountant and/or financial adviser, we will put a strategy in place that is designed to reduce the risk and increase the result that you are looking to achieve when investing in property.
If you would like to find out more about how to become a successful first time investor, please call us to make a no obligation free appointment in the comfort of your home or in our office.
Until next time, thanks for reading.
CEO – Total Investment Property Solutions
I would recommend TIPS to anyone considering buying/building an investment. We look forward to buying more properties with Fred and the team from TIPS in the future.
They understood this was a choice for our family’s future, not just a house
I have dealt with Fred for almost ten years now and in that time he has helped me buy more than 6 properties.
I would recommend TIPS to anyone considering buying/building an investment. we look forward to buying more properties with fred and team from TIPS in the future.