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 3 – Listening to the wrong people
I can’t help but feel that it’s a little ironic that I’m writing this particular blog all about receiving property investing advice. There seem to be lots of experts out there and I don’t pretend to be the final authority on good investing but still I’m adding to the voices. That all being said, please hear me out.
I don’t know about you, but I’ve certainly received a lot of advice about property over the past few years. I have heard all about the taxes someone’s mother-in-law had to pay and how someone else’s 30 year old friend bought the right place and has now retired. The strange thing is that, even although my property portfolio has extended into double figures, most advice I receive is from people who have never bought an investment property.
How do you know who to listen to?
It’s critical that you find people who have similar goals to you. If, like Kaz, you’re looking to own 15 properties by the time you’re 50, try to find someone who has already achieved that! If not, find someone who’s on the way. If you’re looking to develop, find someone who’s into developing – not someone who “knows about developing” but someone who has actually done it.
The best way to find someone worth listening to is to ask a couple of polite questions. When someone offers advice, consider asking the following:
- Have you ever purchased an investment property?
- Do you still own it (and if not, why did you sell it)?
- What are/were your property investment goals?
So what can we learn?
A lot of the advice I’ve received has been well-intentioned advice from well-meaning family and friends. It’s important to respect these people’s opinions without necessarily taking on their advice. There are communities you can join and even more structured groups like our Everyday Property Mastermind groups. Reading the right books, getting the right education and joining a supportive community of experts is the best way to get the right advice.
What can we do now?
The most important thing you can do is ensure you are clear about what you want to achieve from your investing. Then, when you find someone else who is walking the same path (especially if they’re a few steps ahead), you’ll be able to find out the next actions you can take!