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5 ways our minds trick us into not investing

 

What if we have problems with tenants – or can’t get one?

Make sure you have landlord insurance set up which will cover you for damage or loss of rent. You should also line up a good property manager as soon as possible – ideally prior to settling – to help you get a tenant in as soon as possible, and to do the hard work of tenant screening, lease agreements and liaison.

What if I buy the wrong property?

There’s no substitute for research here – buy a property in an area where you know it can be rented, and where capital growth is likely. Remember, too, that property is a very forgiving investment – we have found clients who’ve made every mistake in the book, and they’ve still made money.

 What if I can’t meet the mortgage payments?
Get your finances in order before you start investing: principally, make sure that you can cover the payments, and that you’ve got a cash buffer to cover you for unexpected circumstances like a tenant falling into arrears. You should also get acquainted with techniques to make things more affordable, such as negative gearing and depreciation allowance. Finally, buy a property in an area where you know you can sell it if you have to, so that you’ve got the ultimate get-out clause if it all goes wrong.  It’s all about doing your homework.

What if I end up losing money?

Be proactive about adding value – consider renovations, even if it’s just repainting and putting in new carpets. Take control of your asset – don’t just leave it down to market forces.

What if it’s a scam?

Again, this comes down to research. Scams typically trade on ignorance: as long as you are thorough about investigating your chosen areas, you should be fine. And remember, if it seems too good to be true, it probably is!

Our Property Managers and Sales Consultants are always available to discuss the local market with you further at any time. Don’t be shy, call the experts and put your mind at ease. LEASE SMARTER – SELL SMARTER – Call PRDnationwide Wagga Wagga on 6923 3500.