Investing Basic

10 Things to Avoid in Property Investing

Investing in property is simple, yet a risky investment for those who don’t pay close attention to things other than the property itself.

Here are some property investing tips for you – the 10 most important things to avoid if you want to ace in your property investing endeavors:

1. Invest in properties just for the sake of tax breaks – this could help your gearing, but getting yourself over-geared can make things difficult for you if you want to borrow money from banks

2. Not understanding the concept the debt – you need to know the difference between good debt and bad debt; good debt puts money in your pocket, e.g. investment properties, bad debt takes away money from your pocket, e.g. consumables.

3. Believe every word you hear from other people – people like to give advices. Unfortunately, some could give you poor advice or hide the further details in their advice – you need to do your homework.

4. Put all your eggs in one basket – you need to diversify. Not only in the types of investment, e.g. stocks, forex, commodities, etc., but also in the types of properties, e.g. homes, commercial properties, etc.

5. Manage your property investment yourself – you need professional help because you don’t want to collect rent or fix broken things yourself.

6. Not seeking proper advice – Seek experts to learn from; they have been there and done that for you.

7. Not budgeting for property renovation when buying one – you need to set a credible budget to stick to – renovation is one of the important items that should be included into your budgeting plan.

8. Consider all tenants as the same – you need to reward and take good care of good tenants; good tenants treat your property in orderly manner, bad tenants could burn your kitchen down and run away.

9. Hiring bad accounting person – you need the right people to help you getting the most of your tax return.

10. Not inspecting many properties before deciding to buy one – visit as many properties as possible so you can find the best deal for you.

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