What is the perfect investment property?
Mary’s currently looking for the ideal investment. She wants cash flow positive and high capital growth, all from the one investment vehicle.
Her lofty goals have kept her out of the real estate market for the past few years while she waits for the perfect property to come along – oblivious to the fact this strategy is costing her money.
Let me explain. Mary has spent three years on the sidelines without this alternative income stream (an investment property) building her wealth and financial security. It’s been three years without tax advantages, rental payments, depreciation, deductions and a tax variation – all of which would have been helping the investment property pay for itself.
Mary is so fixated on the property being perfect from her ‘point of view’ she’s not taking into account what we call
10 macro and micro indicators
When you factor in the above 10 macro and micro indicators, the property will be pretty close to perfect. In property investing, close IS good enough – in fact it’s more than enough. Because by having ‘most’ of your criteria ticked off, you WILL have your foot in the door and be ready for another property in a short period of time later.
In Mary’s case, if she’d bought her first property three years earlier, she would no doubt either have bought another property by now or be close to it.
During my time as an investor, I’ve learned that while there is no such thing as the perfect property, there will always be something to choose from. This particular person is missing out on both opportunities by chasing the ‘golden egg’.
My message is to get into the market as soon as possible, leave your investment to build in value over time and you will get both cashflow and high capital growth eventually.
As always, if you have a question, leave your comment below.
Until next time,
From the desk of Christine.