Successful property investing is easier than most people think. The mistakes that prevent most would-be property millionaires from realising their potential are predictable and easy to avoid. In this series of blogs, Den details each of the most common mistakes and how to ensure you don’t make them.
Mistake number 7 – Failing to act
I recently had a conversation with a group of experienced property investors. During the conversation we started sharing our biggest mistakes, and every one of us felt that we took too long to start investing. We held off, waiting for the perfect moment. There was always something that prevented us from starting, myself included; I hadn’t found the perfect property, I didn’t understand all about finances, I wanted to go overseas, I didn’t earn quite enough money – the list goes on.
The fact is, just like many other things in life, there is never a perfect time to buy your first investment property.
How do you know when you’re ready to buy?
Simply, you don’t. If you look hard enough, there will always be something holding you back. However, if you do the following things then you’re probably ready:
- Get some property investing education – read books, listen to a property investing podcast (like ours!), talk to property investors, join a property investing group (like our Everyday Property Mastermind groups) and make sure you know exactly what you’re getting yourself into!
- Do your calculations using a property cashflow calculator – make sure you know, as accurately as possible, how much this investment property is going to cost you (or how much you will make) from Day 1.
- Do you due diligence – make sure the property and location you’re looking at has no hidden secrets and is going to earn you the amount you’ve calculated
If you really want to, you can employ a mentor or coach to help you, check out our property investing coaching or find another property coach whose style and message resonates with you.
So what can we learn?
Many property investors wish they’d started investing sooner. Fortunately property investing can be a forgiving game (I made so many mistakes with my first property and I now have a successful portfolio!) but you still need to feel comfortable about your investments to sleep at night. Furthermore, of all the mentoring and masterminding clients I have worked with, very few property have regretted buying a particular property – most of the regret I encounter is that they didn’t buy a property.
What can we do now?
Have a good look at your finances and decide whether you can afford to buy an investment property. If you can, then start checking off the other “readiness factors” listed in this blog. Work out what you’re afraid of, and create a task or two to help you get past this fear.
There is a whole world of property waiting for you!