What Are the 5 Most Common Excuses Stopping New Property Investors?
A leap of faith. That’s all it takes to achieve your financial goals from your current financial situation. Many aspiring property investors often find themselves trapped in a cycle of excuses, preventing them from realizing their financial goals. From the fear of failure to misconceptions about the property market, investors stop themselves from proceeding further in their journey on account of these excuses.
Despite the potential returns in the long run, new property investors often hesitate to take that leap of faith in the real estate market. Unable to take the first step, first-time investors are prone to miss some of the golden opportunities that present themselves in the property market. What drives this hesitation among first-time investors?
Common concerns such as lack of capital growth, fear of market fluctuations, and lack of refined experience in the field are some of the main reasons why new investors hang back when it comes to investing in properties.
Here are some of the most common excuses used by new investors and how to overcome them:
I don't have enough money to start
Breaking down the excuse
While property investment does require an upfront cost, it is not exclusively for the wealthy. The beauty of property investment is that with right guidance, anyone can see significant returns of a property in the long run by leveraging their current financial situation. You just need to know which market segment to tap into.
In Australia, first-time investors often get incentives from the government that encourages them to pursue their financial goals. Along with this, various strategies like leveraging equity and co-ownership of a property, can benefit new investors. According to a recent report, analysts have stated that many investors start with a deposit as low as 10%, depending on the location and especially, the lender.
Tactics to tackle
Homeowners can utilize their existing property’s equity to secure a deposit for their next investment. The Investors Agency’s signature step is that post-settlement of a property, we help you in leveraging its equity as a deposit for your next investment. It is important to build wealth but it is equally important to maintain it.
Consult with mortgage brokers to understand your borrowing capacity and find the best loan options that suit your current financial situation. Make sure the borrowing costs you agree to align with your financial strategy.
As a first-time investor, focus on investing in regional areas where property prices are lower and offer strong rental yields. Over time, this combination holds the potential to improve your returns.
Key Takeaway – Property investment with the right guidance and limited funds is entirely possible with a strong financial strategy.
The market is too risky right now
Breaking down the excuse
Like our life cycle with ups and downs, the property market also operates in cycles. With periods of growth, stability, dips, and back to correction, the market follows a definite cycle. While short-term risks exist, property investment remains a relatively stable long-term strategy.
Over the past three decades, Australian property prices have consistently increased, despite the occasional dips. For instance, the market experienced a dip in 2023 regardless of its growth in the past three years. With the breakout of COVID-19, many property markets at the global level saw a dip. Since it is part of a cycle, growth followed by a dip is reinstated.
Tactics to tackle
Investors need to understand that property investment is not about quick gains. Having a long-term perspective helps withstand market fluctuations. Invest in properties across different regions. This significantly reduces the risk associated with property investments and balances the exposure to risks evenly.
Investors should consider local market trends, vacancy rates, and future infrastructure projects before investing in a property in a particular region. These factors hold the potential to assess the risks and mitigate them effectively.
Key Takeaway – Risk is a given in any investment. But with proper planning and knowledge, you can significantly minimize its effects.
Start your investment journey with us
With $85,000 in savings or equity, you can begin or grow your investment portfolio with high-growth
properties in Australia's strongest property markets.
With $85,000 in savings or equity, you can begin or grow your investment portfolio with high-growth properties in Australia's strongest property markets.
I don’t have enough knowledge about property investment
Investing your hard-earned money into a market you’re unfamiliar with can be intimidating. Many people believe that they need to be experts in property investments before they begin. And ultimately people hold off on investing.
Breaking down the excuse
Tactics to tackle
Seek the help of professionals in the property market to help you see the trends more clearly. A team of experts at The Investors Agency specialize in finding high-growth properties for you. With our local knowledge and a strong understanding of the market trends, we provide valuable insights that will help you make informed investment decisions.
Key Takeaway – Take the first step and gain experience along the way. When your experience grows, so will your confidence and expertise on a subject.
I'm waiting for the perfect time to invest
Breaking down the excuse
Tactics to tackle
Create the perfect time instead of waiting for it. Start assessing your savings, borrowing capacity, and your risk tolerance. A property in a high demand area with a significant growth potential is more important than market timing. Understand that property investment is fruitful in the long run. So, a property bought today can appreciate significantly in 10–15 years. This makes the short-term conditions prevailing today less relevant.
Key Takeaway – Prepare yourself financially and conduct your due diligence. Don’t let the opportunity pass you by.
It's too complicated for me
Breaking down the excuse
Tactics to tackle
The Investors Agency is a highly sought after Investment Property Buyer’s Agent in Australia. This is because we value your hard work and we work towards finding ideal ways to expand your profits. We offer transparency in our property search and negotiation stages so that you can understand the property market and gain exposure. We begin by understanding your financial situation and tailor our service catering to your financial goals.
With out step-by-step process, we assist first-time investors with their property investment journey and thereby offer them valuable insights regarding the property market. We help expanding the portfolio of experienced investors so that they can mitigate any possible risks and see continued returns in the future.
Key Takeaway – Ask for help and learn. Delegate the task and earn.
Conclusion
Frequently asked questions
Do I need a large amount of money to start property investment?
How do I reduce the risks of property investment?
When is the right time to invest in property?
Are there any government schemes in Australia for first-time investors?
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