podcast

Top 3 mistakes investors make when searching for their next location

By Simon Pressley

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 90: Portfolio update: SPI gives the inside scoop on its latest property purchase
Episode 89: Renovating as a couple: two young investors share their story
Episode 88: Everything you want to know about the short-term rental market revealed
Episode 87: BONUS EPISODE: Former Olympian shares his property development know-how
Episode 86: How a former Olympian found new sport in property development: Ed Fernon's success story
Episode 85: Q&A session with Paul Glossop – more questions answered!
Episode 84: 'How I overcame dodgy builders to manufacture $100k in equity in less than a month'
Episode 83: BONUS EPISODE: Top Aussie broker’s tips for surviving changes to mortgage lending
Episode 82: The investment strategy that could allow this 32-year-old to retire TODAY
Episode 81: BONUS EPISODE: Secrets of the Perth market uncovered: invest now or wait?

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