When it comes to property investing, everyone seems to have an opinion or tip to offer. Not all advice, however, is worth heeding.
While buying into a hotel or purchasing overseas property may have worked out for one person, that doesn’t mean it’s a safe strategy for you.
Here are three dangerous pieces of advice to take with a serious grain of salt:
1. Invest using a SMSF
The average property investor simply doesn’t have the expertise – or the super balance accrued – to make self-managed superfund (SMSF) investing a viable option.
Using your retirement savings to buy property is incredibly risky. On top of that, borrowing is complicated and expensive.
2. When you find a good location, stay there
When you start seeing high returns in an area, the temptation to snatch up more real estate can be strong. But as the saying goes, ‘don’t put all your eggs in one basket’.
Speak to your property manager or an agent about other opportunities – they may even tip you off to a suburb on the rise. A diversified portfolio is much more stable should one area experience a downturn.
3. Get your start flipping houses
Like SMSF investing, flipping houses should be left to the experts. You could make a fast profit – or you could lose everything.
Buying, renovating and selling a home in a small window is also stressful and time consuming. Even if you’re confident the home will perform, are you willing to make the process your full time job?
For some good advice …
While everyone may have your best interests at heart, it’s important for property investors to stick to the advice of experienced experts – like the team at Civium.