What most property investors will do, and continue to do..
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Despite all the information available, most investors and investment
advisors will continue to put their money into ‘old faithful’ –
the 4 bed family home.
Even though 76% of people searching for rental accommodation are single or couples, the standard
property investor adds another dwelling to the property market that doesn’t match what the market wants.
Most investors will put their money into a space that doesn’t get fully utilised and doesn’t maximise the
area in which they could potentially commercialise.
Many will utilise negative gearing as a strategy too however many investors don’t realise that negative
gearing is a trap. If it doesn’t produce positive cashflow – you will be tied to your job, forever.
Isn’t the purpose of investing to take steps toward financial freedom?
Most investors will think they are taking the safe option
of investing in a 4 bed standard home.
How would you handle the
You get a tenant in your 4 bedroom home and it’s negatively geared for 2 years. Then, the tenant
moves out or loses a job and you have no source of income to pay your repayment commitments.
You look to get in another tenant but you struggle to get market rent or tenants due to oversupply
in the market or general affordability.
You are forced to put the property back on the market for sale. In 2 years, the market hasn’t
increased enough to break even and you end up losing money.
This is the exact situation you want to avoid.
And yet, this is exactly what most investors will do and keep doing…