07 Sep Investment property myths
This week we are talking about investment property myths, and it’s important that you appreciate why they exist in the first place. We have already mentioned the issue of taking advice from people who are not qualified to give it, regardless of how well-intentioned they are, but there are two other categories of myths you should be aware of.
The myths that used to be true
The property market has evolved so drastically over the last decade that it is virtually unrecognisable now as compared to in the early 2000’s. Values have increased exponentially, and what used to be considered to be, “useless land,” is now rare and valuable. Importantly, the level of understanding that everyone has in relation to how real estate works has changed also, and with that level of education comes a better basic understanding of how the entire process works. It’s fair to say there are plenty of these myths that used to be true around, but our favourite by far is
“The Perfect Home Is Out There, Wait For It”
When buyers used to be spoilt for choice, this was good advice. Generally passed on by parents, it created a certain state of mind in buyers, who would go into a home with an almost cynical point of view – it’s not perfect, I’m not interested. Now, with real estate values increasing every property cycle, many buyers have found themselves waiting too long, in a costly effort to find something that just doesn’t exist. Even worse, longer you wait the less your money is worth and the more property goes up in value. It’s highly likely that your money is worth more today than it will be tomorrow, so the best time to buy is now.
The myths that sound good
In any industry there are plenty of myths that sound great. They make perfect sense when you say them, and so you are inclined to give them more credibility than they deserve.
“You need a deposit”
This prevalent myth is perpetuated by the media an attempt to show how dire the real estate market is, especially for first-time buyers. Don’t allow your lack of the deposit to be the reason you choose to continue renting. Maybe you do need a deposit, but potentially it will be far less than you think it will be.
Want to find out? Reach out to us here for a no obligation, friendly conversation.
The Belouis Team