04 Sep Busting investment property myths
In real estate investment, everyone has an opinion. Sometimes, it is based on experience, real-world data and genuine science, but often this is not the case and today we are going to bust a few commonly held real estate myths.
Only buy close to the CBD
This myth is a hangover from a few decades ago when property increased exponentially close to the city, and more slowly the further you went out. Now, thanks to urban sprawl, some of the most valuable real estate in many cities can be found in the outlying suburbs. This myth should be amended to say that you should buy in places that people will enjoy living.
Speaking of urban sprawl, there is a commonly held belief that it follows some kind of set pattern. Many real estate investors are followed the pathway out of the city, and assume that the next suburb out from the last boom location will be the next best place to invest.
as mentioned in our first point, consider whether people will enjoy living in the area, and if there are enough amenities and infrastructure in place for families, single people, the elderly or others to enjoy living there.
You Need a Big Deposit
It’s not always necessary to have a big deposit in order to secure your dream home, and stop paying someone else’s mortgage. We work with clients who want to get into
the real estate market, but don’t necessarily have thousands of spare dollars lying around to use as a deposit. If you’d like to learn more about how we may be able to help you get into your house without a deposit, click here (link)
Property always goes up in value
this one is only kind of true. While property statistically goes up in value over an extended period of time, there may be some slumps in prices, dependent on economic factors and financial upheaval. This is what makes property so wonderful. When there is the global crisis, or an economic issue, most investments will suffer as a result. But the property you invested and will still be there regardless. You can open the front door, sleep in your bed and spend time with your family inside your investment, which you cannot do inside a sharemarket investment. Relax, the property market is robust.