Sometimes the best property investment advice is to get out of your own way. Even if you've done all the proper research beforehand, it's possible to stuff up what appeared to be a sure thing if you don't avoid some common pitfalls.
The following are three strategy mistakes to keep clear from during your investment journey.
1. Putting finance on the back burner
It's all too easy to get swept up in where you plan to buy a residential property investment or what type of property it will be.
While things like local infrastructure development and rental yields are important to research, it's just as vital to focus on getting the right loan for your needs.
After all, a solid rental property in Auckland or Hamilton won't do you much good if you're buried under debt from a bad mortgage.
2. Resting on your laurels
So you've bought an investment property and rented out to a tenant. Time to sit back and relax, right? Wrong!
You can't just assume that everything will run smoothly once the lease has been signed. Real estate is an ongoing investment that requires your attention.
Not only should you be making sure the property is properly managed, you should regularly check to make sure you're charging the right amount in rent.
The real estate market is constantly shifting, and it's up to you to keep up.
3. Turning away expert advice
Property can be much easier for people to understand when compared to other investments, but unless you've spent years working in the market, chances are you're not an expert.
Fortunately, professionals exist who can help you explore your options with everything from where to buy to how to arrange financing so it's most tax effective.
Don't be afraid to reach out to experts who can help you make the most of your investment. After all, succeeding with help is a much better option than coming up short by yourself.
Here's to your financial independence!
Daniel Carney
Authorised Financial Adviser / Investment Property Expert