3 property myths that need to disappear
Real estate is a complex industry, there's no doubt about that. People spend years of their lives studying its cycles and its theories, but for every answer they work out, they discover there's even more left to learn. For some, that means there's always a surprise in store, for others it's just frustrating, but the reality is that knowing property properly can take years of hard graft.
However, the average person likes to have easy-to-digest nuggets of information, which unfortunately can lead to some false assumptions – assumptions that could be holding you back from making the most of your investments. Here are just three of those myths we consistently encounter here at Think Money.
1) Property is completely unaffordable
This one is all over the news: property prices going up here, there and everywhere, while pundits and commentators declare the end of the real estate world as we know it. However, the reality is that real estate is still affordable for the average investor, so long as you use the right tactics.
Don't believe us? The Adelaide Bank and the Real Estate Institute of Australia recently revealed that affordability has not been this good since 2013. Prices might be high, but interest rates are low – combine that with a interest-only loan (and a savvy property mentor), and you'll quickly find that servicing a mortgage is not as difficult as you might think.
2) Capital cities are the only place to invest
If you truly want to make the most of your portfolio, you need the right team on your side.
It's no secret that the regional towns of Queensland have taken a bit of a beating lately, but that doesn't mean it's time to sell up and move on! Brisbane still remains a great place to invest, but it is by no means the only right place to invest. The regions have plenty to offer, and there are some serious up-and-coming stars out there – so long as you look in the right areas.
The fact is that property tends to work in cycles. The regions might be taking a hit now, but with all the various projects taking place over the state, you might find that they don't stay down in the dumps for too long.
3) It's better to invest on your own
We get it: people want to cut out the middle man and go straight into investment by themselves. Some people do very well this way, and all the best to them.
However, if you truly want to make the most of your portfolio, you need the right team on your side. Accountants, legal advice, property advisors: these people can help you take your properties to the next level. Take depreciation, for example: using Australian Taxation Office data, BMT Tax Depreciation found that many investors were missing out on an extra $50 a week, simply from not claiming properly.
Did you believe some of these myths? Make sure you never fall into such traps again and get in touch with the property advisors at Think Money. Our expertise is no myth!