We\u2019ve spent years advising property investors and we think there are four common ways that an investor will pay when it comes to buying an investment property.<\/strong><\/p>\n As an investor, you have to ask yourself which payment method best suits your personal circumstances.<\/p>\n While only you can decide which option is best for you, we reckon we can predict which method you\u2019re most likely to favour.<\/p>\n Have you purchased the right property? Picture: realestate.com.au<\/p>\n<\/div>\n The fact that we all live in a property \u2013 whether through ownership or as a tenant \u2013 can lead<\/a> us to believe that we automatically know the market through familiarity with the product.<\/p>\n But interestingly, investors are more likely than owner-occupiers to sell at a loss.<\/p>\n It\u2019s not uncommon for us to see an investor with only 3-4% compounding growth performance in their portfolio over time, whilst historically it\u2019s been relatively straightforward to achieve 7% or more in the same time frame \u2013 if you know what you\u2019re doing.<\/p>\n So the key here is to know the difference between a property that is investment grade versus simply investment stock.<\/p>\n Other factors that can lead to buying the wrong asset include investors becoming impatient and experiencing Fear of Missing Out. This is when an investor will buy anything just to get into the market rather than purchasing the right property.<\/p>\n Waiting can be costly. Picture: realestate.com.au<\/p>\n<\/div>\n The market waits for no one. It will go up or down with or without you as an investor.<\/p>\n Generally speaking, the longer you wait to buy the higher the price, and the more your gains are foiled.<\/p>\n Here are the most common reasons we\u2019ve heard over the years from those waiting for the right time:<\/p>\n \u2018I should\u2019ve bought 10 years ago\u2019, Who hasn\u2019t wrestled with similar thoughts?<\/p>\n We can all relate to the fear and uncertainty, but procrastination is by far the most expensive way you\u2019ll pay as an investor.<\/p>\n It\u2019s largely a hidden cost as it\u2019s about opportunity cost more than pain in your pocket yet it can have a huge impact on your overall wealth accumulation.<\/p>\n The key is waiting for the right property but not for too long.<\/p>\n You need to make sure you don\u2019t pay too much for the property. Picture: realestate.com.au<\/p>\n<\/div>\n Most buyers \u2013 both investors and owner occupiers- fear paying\u00a0way too much or even more than they should have for a property.<\/p>\n We all know agents work for vendors and their job is to get\u00a0buyers to pay top dollar.<\/p>\n So in some ways, this fear is justified.<\/p>\n But property is a forgiving asset and you can mitigate this risk largely by ensuring you buy the right property and take a long-term view.<\/p>\n Need more investing info? \u00a0Here\u2019s a look at other Property Couch videos:<\/strong><\/em><\/p>\n The right advice will help you avoid paying too much for the property. Picture: realestate.com.au<\/p>\n<\/div>\n An experienced independent advisor will ensure you won\u2019t buy the wrong asset, wait too long or pay too much.<\/p>\n Whilst it may seem like you\u2019re paying more upfront, having professional advice in the early stages, will ensure that the benefit of compounding will see you come out financially on top in the long run.<\/p>\n Remember, the price is what you pay but the value is what you get.<\/p>\n
\n <\/p><\/div>\n Realestate au <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"1. Buying the wrong asset<\/h2>\n
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<\/p>\n2. Procrastination<\/h2>\n
![\"\"](\"https:\/\/i0.wp.com\/www.realestate.com.au\/blog\/wp-content\/uploads\/2017\/09\/18140050\/procrastination-1-1024x768.jpg?resize=1024%2C768&ssl=1\")
<\/p>\n
\u2018I\u2019ll just wait and see what the government does\u2019,
\u2018I\u2019ve been meaning to get to this\u2019,
\u2018I\u2019m too late to get into the market\u2019.<\/p>\n3. Paying too much<\/h2>\n
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<\/p>\n4. Professional advice<\/h2>\n
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<\/p>\nFor more from The Property Couch, visit\u00a0thepropertycouch.com.au\u00a0or subscribe to The Property Couch podcast, available on iTunes or Android.<\/strong><\/em><\/h6>\n
The Property Couch provides a general opinion based on current market conditions. These opinions should not be treated as investment advice. Always obtain advice based on your individual circumstances.<\/span><\/strong><\/h6>\n