Property Investment Myths: Time, Risk & Money

property investment myths newspaper graphic

There is an abundance of property investment myths floating about that deter potential investors and generalise disinformation. Being conscious of them can guide you to understanding property investment and your intentions. 

It is Not the Right Time to Invest 

The ‘right time’ is usually just a vision that hinders investors from achieving their long-term goals. “Now is not the right time” being a true remark is not the case because there will always be a right time to invest in property. You need to conform to the market in terms of where and what you buy to reach the most profitable gains. In general, the right time to invest would be when you have the time and resources available to create a fitting strategy for all market conditions. Timing is relevant but not as such in terms of the market, it is your own personal timing that matters most. A constant need for suitable accommodation and a persistent undersupply of homes constantly makes property investment a very appealing market. 

There’s Too Much Risk 

Any form of investment carries risk. However, investing in residential property has shown to offer one of the most stable long-term investments, providing constant returns and capital growth. 

Conducting research is key to success if you plan to find a low-risk, high-return property. Research locations that are anticipated to deliver the highest rental yields and capital appreciation will help to alleviate risk. Diversifying your portfolio is another fantastic way to alleviate risk and increase returns. Having a diverse source of income through a varied portfolio reduces the risk of loss to your portfolio, presents more opportunities for return and protects you from facing any adverse market cycles. 

It is Only for the Rich 

Needing substantial amounts of money has always been one of the biggest property investment myths that affect the decision making of first-time investors. You do not need a lot of money to get started, sometimes you do not even need any of your own. The key is to leverage your income and equity to build the right strategy and meet your long-term financial goals. 

It is important to weigh up the cost of an investment against your current financial situation. As income grows, you will have more fluidity to finance other investments. 

Want to learn real facts and knowledge about property investing? 

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