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Top 3 mistakes investors make when searching for their next location

By Simon Pressley
0

Simon Pressley, founder, Propertyology

 

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Two or others biggest mistakes that investors make when identifying a new location to buy in. Firstly, I feel they don't get the structure right or the investment strategy right. So rather than thinking location specific, should be thinking more about price points and rental returns and levels of gearing. Getting the numbers side of things right first. That will automatically eliminate some locations for affordability reasons. Then I think another common mistake investors make is being influenced by the wrong parties. Whether that's well meaning families, friends, accountants who aren't property investment specialists or whoever. And then probably the third most common decision is actually not understanding the industry drivers and being a creature of habit and going back and buying the next property but in a similar location to perhaps where you already own property in. I call that a concentration risk. So it's important to invest in different states and different towns and cities.

Listen to other instalments of The Smart Property Investment Show:
Episode 70: SPI special episode: buyer’s agent answers more listener questions
Episode 69: Are you a ‘lazy’ investor? Consider the benefits to working with a financial team
Episode 68: Special episode: audience discussion live from the Property Buyer Expo
Episode 67: Don’t get ‘caught up in the now’: an expert reveals his tips for success
Episode 66: Wealth distribution: how should you manage your money?
Episode 65: Real estate agents: what separates the good from the bad?
Episode 64: How this investor learned from a property blunder
Episode 63: Q&A session: the SPI team answers your questions
Episode 62: Property procrastination: the importance of finding help
Episode 61: The ins and outs of strata: what buyers should consider

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