Real estate investing: What’s stopping you?
When people think of wealth building, many look towards traditional investments such as shares, stocks and bonds.
Property is a less volatile asset to own than shares, which means that the value of the home is likely to not shift as substantially as this type of investment.
On top of this, a real estate investment is a physical asset that you can add value to through renovations and updates - something you wouldn't be able to do with shares.
Due to its many benefits, investing in real estate is becoming a more popular option among many Australians. In fact, a recent Commonwealth Bank survey found a staggering 54 per cent of people said that property is the best strategy for investing their money. A further 47 per cent said they recently bought or are planning to buy an investment property.
Although a rental property makes a fantastic investment, there are still many things stopping people from taking the plunge and getting on the road to wealth.
I can't afford to pay for another home
It may have taken some time for you to save up the deposit for your very first home, but did you know you can pay for your investment property through refinancing your loan? By accessing the equity stored up in your current home mortgage, you can cover the costs of the deposit for your investment property - meaning you won't have to save for months to secure another home.
Additionally, off the plan properties typically only require a 10 per cent deposit at the time you sign the contract of sale, while the remainder of the balance is paid on completion of the home. This could be anywhere from a couple of months to over a year, giving you adequate time to sort out your home loan. In the meantime, you could refinance your loan to pay for the initial deposit.
I don't know a thing about property
Another hurdle that tends to stop people from building wealth through property surrounds the industry itself. Not knowing anything about the real estate market shouldn't be a reason to stay away, especially with the assistance of a wealth coaching expert to guide you on your journey. From determining which area to buy in to the type of strategy you should use, an expert can help you find a property best suited to your goals.
I don't know what I want to achieve
If you haven't got any goals set out for yourself, how do you know if you've become successful? Before you make an investment, you'll need to determine what you want to achieve and give yourself a deadline. Failure to have goals can lead to you becoming lost and unmotivated. Once you have identified what you wish to achieve and when, you'll have a sense of direction to fuel your decisions.