Tuesday, 01st March 2016
Sometimes it seems the stars align, you make a decision to invest and the very next day you've found the perfect property… Or is it?
How do you know when something is too good to be true? One technique that's never let me down is the sleep test. I wait 24 hours and if I have an entirely restless night, I know it's not for me.
But sometimes our instincts can let us down and we need to rely on some cold, hard truths. My top 3 signs you should run from that investment property are as follows:
1. It needs work
There's nothing more certain to crush your cashflow than a renovation. I choose new every time over old. Sure it may look like a better deal to get something older, but once you start work, you never know what problems you'll uncover. The more work you attempt, the more repairs you're lobbed with - I find this time and time again.
2. It's priced too high for your budget
You've done the figures once, twice and three times, but there's still no way you can afford that investment property. Walk away! There's no need to put yourself in a vulnerable position. Get in touch with your property portfolio specialist and tell them what you're looking for - there will always be another property to suit your budget and investment goals.
3. It's right next door to your house
Just imagine how handy it will be to have your investment property right next door. You'll be able to keep an eye on the tenants, make sure they're mowing the lawn… Stop right there! Your investment property is a stand-alone business and any decision made needs to be from a financial point of view.Seek out something that ticks off your wealth creation strategies, rather than being something bought out of so-called 'convenience'.
Don't get stuck going down a path that's not right for you. Seek out professional advice from a property portfolio specialist such as myself and get on the right track to create independent wealth.
Until next time,