There is plenty of information on property investment & you even might have your own property investment strategies. However, perhaps it’s the pitfalls which are more important! So you don’t become part of the statistics of the property game.

While every investor started out with the intention of making it big in real estate, unfortunately only a handful will benefit from their first investment and even lesser will actually make use of property investments to accumulate their wealth. This is due to the lack of knowledge & understanding of the market trend.

In this article, I’ll explain 7 of the most common mistakes investors make & some tips on how you can overcome these to win big with real estate.

  • Buying With Emotions

When it comes to buying a property, about 90% of your decision will be based on emotion and only 10% on facts & figures.

This is understandable as we are only humans.

However, when it comes to investing, this is a common trap & it’s MUST be avoided at all cost!

Your emotions will cloud your judgement and it means you are most likely to over-capitalise on your purchase rather than getting the best possible price and outcome for your investment goals.

As a property investor, ALWAYS buy based on ANALYTICAL RESEARCH.

    1. Margin
    2. Risk
    3. Entry Price
    4. Rentability

Using the above as a guide, rather than buying a property just because it’s near MRT, Freehold, shopping mall, CBD district etc. Consider based on financial gains rather than personal feelings.

Investing is all about ECONOMICS, not the EMOTIONS.

  • Many property investors fail to plan they plan to fail

The key aim of most property investors is to build a lucrative property portfolio. One that will one day give them financial freedom & early retirement!

However, without detailed planning of the attack, it is like going on a holiday without researching…you’ll inevitably end up LOST!

Successful investment in real estate requires you to set goals, determine your future and devising a cohesive action plan!

Ask yourself – are you looking for short term yields or long term capital gains? How can you best manage your cash flow as a smart investor?

What property types should you be investing in order to meet your goals?

With a detailed & strategically plan, your investment journey will end up exactly where you want it to be.

So plan your action and take action on your plan.

If you’re a first-time investor looking for a proven property investment strategy or an established investor who’s stuck or maybe you just want an objective second opinion about your situation, why not let us build you a personalised Asset Progression Property Plan.

With a Strategic Property Plan you’re more likely to achieve what you desire because we’ll help you:

    • Define financial goals;
    • Realistic check, especially for your timeline;
    • Restructer your property portfolio that might not be working for you, or if you’re working for it;
    • Enhanced strategies to maximise your Asset progression;
    • Risk management

Best of all, it to benefit you to be able to grow your Assets through property portfolio faster and safer than an average investor.

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  • Poor Cash flow management

Understand the cash outlay difference between New Sales property & Resale property. Which is more advantageous to you?

    1. Property tax
    2. Maintenance fee
    3. Bank interests
    4. Instalment

In order to understand all of the cost involved in acquiring a New Sales property VS Resale property can be difficult and you should always seek professional advise who knows about real estate investment. Know exactly what you are getting into financially.

Holding power is the KEY to property investment.

Scrutinise each potential property analytically and ensure you make ade

Examine each potential investment analytically and ensure you make acceptable allowances.

Thru careful & detailed financial planning of your income and expenses, you’re to avoid any nasty surprise!

  • Financing

Along the way through property investment, you’ll realise that property investing is a game of finance which involved houses.

Doing it alone can be daunting and it’s very time

-consuming. Using the RIGHT financing instrument can actually help you achieve your goals in property investment FASTER.

Understanding how difference financing instruments can help you with your property investments.

The best advice I can give you when it comes to financing your property investments is to seek help from a qualified & professional mortgage broker.

To help you understand what I am getting at you, click here to understand more==> CLICK HERE

  • Speculating

With the government cooling measures in place, Speculating is definitely not visible.

If you are looking to become a millionaire overnight you can forget about property investment as property investment is a steady long run investment which gives capital gains over time.

Many think property investment will be a quick fix to their financial problems.

However, the truth is Real Estate investment is more about strategic investing and not speculation.

While many might see this as a drawback, I see it as security; because a property is a commodity that beyond a doubt commodity that we all need.

It’s tested and proven of the ability to provide steady, long term gains.

With the right knowledge, you can use the gains you made from the 1st property to leverage and own a subsequent property adding more to your portfolio.

Best of all, you can use other people’s money (OPM) to pay for your property while you enjoy the gains. No other commodity gives you the ability to do so.

Acquiring property for investment in the RIGHT region is the KEY to success than property speculation.

Here’s an example of the real estate market movement over the past 25 years

How will the price movement be next?

In a piece of recent news, “we expect home prices to double by 2030,” five Morgan Stanley analysts wrote in the report. Click Here to read the full article.

  • Not having the RIGHT knowledge

Understanding property markets take time.

By attending one or two seminars, or read a couple of real estates investment books won’t provide you with the knowledge of what to buy exactly.

Of course, you can research an area on the internet or view 100 of houses but what is lacking are the perspectives and that’s something which can’t be bought.

Most investors made get this step wrong because there is a HUGE difference between knowing the area well vs understanding the property market for investment.

This is why more & more investors/home buyers are turning to Real Estate consultant to help level the gameplay for them.

Why not leave us your contact details and have a complimentary, obligation-FREE discussion with us on your needs and let our UNBIASED strategy formulate a plan or restructure your property portfolio.

  • Dive or Dither

The most common traits of property investors who either had 1 investment property or never even make it to their first. Acting on impulsive or being overly cautious with no action taken.

Dive – Attended a seminar & purchase into the crazy scheme they’re told without doing their homework. When the investment didn’t go well, they lose heart and said property cannot invest.

Dither – Procrastinators & their own enemy.

Attended every other seminar, read many books, watch the news, only to end up with information overload and unable to act.

This is call paralysis by analysis.

Sure! learn as much as you can and make a comfortable investment decision, however, DO NOT think you can ever know it all.

There is always something else to learn and by immersing yourself in the game, it’s the best way to learn.

With all the negative news out and about, many investors are holding back and wondering if it’s a good time to buy or should wait and time the market?

Don’t try and time the market, even the experts get it WRONG!

I do understand why investors think it’s the right thing to do. I know many financial planners would recommend “when to” investments, to know when to buy and sell.

If you buy low sell high, you do well but if you get your time wrongly you can say BYE BYE to your money! Shares, commodities and futures tend to be ‘when-to’ investments.

I would recommend “how to” investment to you, such as real estate, which it’s valued steadily increases and do not have the crazy variations in price (Only if you know how to spot the right property). Yet still sturdy enough to produce good capital gains through benefits of leveraging.

Don’t get me wrong, timing is still important in property investment, however, it’s nowhere near as important as how you buy them.

Having said that, getting the time right and coupled with the right investment knowledge, your property investment returns can accelerate massively.

Thank you for spending time reading this article and I hope it makes sense to you.

If you are interested to find out more about our property investment strategies or planning for your next investment you may want to give us a call at 8411 2292 or WhatsApp us by clicking HERE NOW!

You might also like to read about Property Asset Progression & Property Exit Strategies