Hi all,
As a new investor, I’m (and I’m sure plenty of other people) am interested to hear about some of the mistake you guys have made along the property investment path. I guess it can only be beneficial for everyone, as you can always learn from your own mistakes, but benefitting from others is a priviledge… [biggrin]
I’ve made many mistakes.
– One was buying a property off the plan, assuming/hoping it would go up in value before completion.
– Another was lending money to people.
– not buying as much property as it could afford.
– getting my first loan application rejected, and giving up, not applying elsewhere
– beleiving what a real estate agent said
Terryw
Discover Home Loans
Parramatta
[email protected]
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Daniel,
From my personal position.
1. Not keeping on with property investment from the early 90’s. Could have long left the workforce if I knew then what I know now.
2. Sitting on unrealised equity – now regularly monitor and track movements in property prices in the areas I invest in so I can leverage off equity as it comes available.
3. Getting my own valuations done so I have greater control over my releases equity.
4. Fixing interest rates for 5 years too ealry five years ago.
5. Being a focussed on interest rate costs and not the value of the assets the additional money could enable me to hold.Other than that I have seen people
1. Consult their trusted financial planners.
2. Over analyse and do nothing.
3. Who are not prepared to take on some risk and end up doing nothing to their long term detriment.
4. Consider that now is not the right time to buy well researched property.
5. Be indecisive.
6. Think small picture instead of big picture.
7. Not working to aplan.Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113My mistake was going to University and thinking I could get a job in what I studied in. I am now a House Dad and can’t afford to buy or hold my negative geared property which I sold. So at the moment I am building up my cash reserves through careful stock market investing and I am waiting for the kids to go to school in 3 years time and then I will hopefully get a job. My other mistake was timing with the sale of my investment property. I should have waited till after 30th of June so that my social security payments of austudy didn’t have to be paid back due to the capital gain eing regarded as income. Interestingly Capital losses are not able to be offset against income but capital gains can be regarded as income. [grrr]
Hi Daniel,
I too am just starting out in the journey of investing.
I bought a block on land in a new estate towards the end of the boom period. Since then I have seen a number of other new estates go up around the area and realise that the value of the land will not increase anymore. I am now stuck with the land and repayments, so have made the decision to put it on the market. Hopefully I won’t make too much of a loss after costs and I can continue to deals after the block is sold.
So lessons learnt:
Don’t jump into a deal too fast, at least not until more research is done.
Have a back up plan if things don’t go the way you expect them to.Since starting the mentoring program, I am starting to realise some of the areas of investing I can improve on and taking action.
I see mistakes like the block and some of my other investments as learning experiences to help you become a better investor.Hi Daniel
There have been many of them. This one is from the early days.
Getting 80% LVR loans because I didn’t want to pay the Lenders Mortgage Insurance premium. With 90% or higher LVR loans we could have bought double the number of properties to wrap with the money we had.
Good luck in the future.
Cheers, Paul
Paul & Karen Dobson
negative2positive
Turn your negatively geared property into positive cashflow.
Phone: (02) 4984 9540Talk to us about Wrap Training Joint Ventures.
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Hi Daniel,
Quite a recent one here. Perths booming CG has pretty much negated it, but it was a mistake nonetheless.
Trying to rush through a 18 day settlement with virtually no contacts (thats 18 days TOTAL, not working days). The vendor had other offers and we thought we had to offer that to make ours more attractive. In the end, we offered something we couldn’t deliver and paid over $1500 worth of penalty interest on the delayed settlement.We were pretty pissed at the time, but the property has gone up by 10 times those penalties in the last 9 months. We are now just happy we secured the property, but in a period of flat growth that penalty interest could have been a deal breaker.
Best wishes
Chris
Hi Daniel,
Some of my mistakes;
Not having a plan,
Finally getting one and not doing anything to make it happen,
Not trusting my own instincts and research,
Buying lots of shiny things [biggrin]Finally snapped out of it one day though…
Some of my wins;
Both myself and my wife worked 7 day weeks for a year to save for a deposit on our PPOR, $15,000 – may not seem like a win, but we were the only ones we knew that didn’t need any grants or family assistance to be able to purchase – yay us!
Experiencing 2 years of 20 + % growth on this property, or as I like to call it – KARMAAll the best.
Mark.
Definately! Have made plenty!
Listening to people who say”oh you better get in fast and buy as you’ll miss out” This is a load of rubbish.
Not taking responsibility for my own purchases,ie expecting other people s word to be truth in the DD area
Not doing my own research using my own gifts and abilities and experience.
Not following up real estate managers.
Dealing with “new to the job” commercial property managers and not stepping up and speaking straight to the boss when i see a problem occuring.
Giving full responsibility of my investments to people I have only known for short periods of time and trusting them based on there word instead of giving it time for them to earn trust,and respect
Getting too emotionally involved in deals and rushing in instead of just being patient and wait for best deals.
Putting all the responsibility of the outcome of an investment on 1 person in the operation
Telling people all my business dealings
Trying to convince someone (who doesnt agree with the positive aspects and huge benefits of property investment) that its great and they should get into it and trying to get acceptance from them.
Not being generous enough
etc etc etc.
But for every mistake u look back and say “far out look at how far ive grown in such a short time due to having the confidence to step out and not be afraid of the what if’s” !We’ve got 70 yrs on planet earth,Lets make the most of every day!
Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
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