Getting Over The ‘What If’ Thoughts Of Property Investing
FEAR WILL STOP YOU FROM DOING EVERYTHING
Remember the fear of going job hunting. You never knew what question you would be asked and what was expected of you. Over time those in the know realised that to counteract this fear of job interviews it was best to look at all possible scenarios and go to an interview with pre-prepared answers.
So it is with property investing. The fear of property investing can arise from the unknown.
It is advisable to research the whole process of property investing and then break that down into sections so that you can find answers to any and every possible scenario that you can think of.
It is all very well going to seminars held by experienced investors, but property investing is not a ‘trial and error’ situation. It is a means of building wealth but it does need to be planned.
A quick example:
If you have decided to purchase a particular property you would take the following steps:
• Cost out the ingoing expenses
• Plan how you are going to pay for it
• Cost out the repayments on the mortgage
• Find out how much rent you can get for the property
• Can you sell the property if you need or want to? Are properties in this area selling at a reasonable rate?
You can see by having the answers to these questions, doubt is taken out of the equation. There could be other questions too like, “what happens if I cannot get finance?” Answer: “ask someone else.” But all in all you can see that buying investment properties will mean strategising the process.
When strategies are put into place the fear is great reduced because you will know what the next step is going to be.
Investing in real estate is not a situation where you ‘buy and hope for the best’.
A more advanced strategy that needs to be in place also is the plan to cover yourself for the worst case scenario.
For example:
• If the house burnt down – cover it with insurance (before, of course!)
• What if the tenants do major damage – have landlord insurance
• What would you do if rental in that location dropped? Maybe you would sell.
Before committing to purchasing a property all these contingency plans should be written down and that will help you make decisions rather than fear making them.
A fact is that not every transaction is going to be 100% successful and for some reason or another you may make a transaction that requires you to accept that it is not as good as you planned, or you make the decision to quit it.
Planning is the absolute key to property investment success.
Filed Under: Featured • Investment Strategies
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