In this era, property investment is an excellent and a quick way to to be rich. Investment property is a long-term business to increase your wealth but there are some reason why you shoudn’t start your business in property investment.
If You’re Buying a Property to Pay less Taxes
Many investors focus on how to pay less taxes. To save tax, they overpay for new while ignoring the basics of investment property. Their accountant tells them that they need negatively gearing and they get excited that they’ll save 49 cent by loosing every dollar. But they don’t know that it’s not an authentic way to grow their wealth through real estate business.
If you’re Buying because you’re Disappointed
There comes a time in property cycle when new investors listen by those investors who purchased an investment property a few years ago. So before buying an investment property, you should be more cautious in property cycle. Sometime’s being over optimistic causes failure.
If you’re looking for a shortcut to get Rich quick
In this era, every new investor want to get rich quick. But investment property is a long-term business. Every new investor do some mistakes when they start out. Sometime’s, it’s takes 10 years to understand the whole process of what you should do or what not to do. After understand the who cycle process, it takes two to four years to undo the mistakes that is you had done in start of your business.
If you’re not well aware with the Property Investment Workflow
Many new business investors are optimist that they are well aware with property investment principles and workflow. They believe that they know all the process of investment property management. So after these misconceptions, they buy a property in such areas where they want to live.
Before purchasing an investment property, only emotional reasons are not enough to take a wise decision but also you have to understand the circumstances of investment property and fundamentals. A successful investor understands the strategy of business investment that fits best with his risk profile. Before buying an investment property, understanding the fundamentals of investment property can help you to achieve your long term financial goals.
If you’re not a Financially Fluent
In investment property, understanding of how to use the budget is one of the fundamental key to success. Before buying an investment property, make sure that you have learned how to use your limited budget, spend less than your salary income. For example, if you’re not saving your money, and spending too much then the investment property business is not suitable for you. Spending large amount of debt on your investment property is also get you into mentally headache. Because spending more debt to your property means you’re increasing the risk.