Why aren't you investing in property?
There are various reasons and excuses that I have come across as to why people are not investing in property. However, the actual reality is that many people could purchase a property, but there is always something stopping them from going through with it.
Buying an investment property puts you one step closer to reaching your financial goals. If you currently have no investments, but hope to buy a property someday then you should read on to discover what could be stopping you.
Some of the most common excuses that I hear most are as follows:
1) I cannot afford to buy a property This is one of the most common excuses as to why many people are not buying an investment property. However, have you looked at your finances lately and have a budget in place? Do you actually know how much properties cost? Knowing how much you are left with each month is a good starting point and putting a savings plan into place is the next step.
Most properties bought off the plan require a 10% deposit and you can still find properties for $400,000 which requires a $40,000 deposit. Speak to a financial expert who can help develop a plan to work towards your realistic goal.
You also might have to make some sacrifices in order to afford to buy a property. This could include moving back home to save on rent, stop buying lunch and bringing lunch in to work, or sacrifice a holiday. Just remember, making short term adjustments to your life will benefit your long term goals.
2) It’s not a good time to buy If today or this year is not a good time to buy a property then when is? If you use that excuse this year, then no doubt ‘something’ will turn up next year and you will never get a foot on the property ladder. If you have the money to buy then you should buy a property now. No matter what stage of the property cycle you are in, you will always be able to find a property to buy for a good deal. You should also remember that property investment is a long term strategy and ideally properties should be held for as long as possible. Don’t forget property values tend to double every 10 years or so too, so the earlier you start the better.
3) Property is too complicated Buying property is actually more straightforward than you think, and many people prefer property investment over shares, due to less volatility. At iBuyNew we can help you understand key property investment terms and show you the best places to buy. You don’t have to do it on your own and we can lead you every step of the way.
4) I don’t want to take on that much debt There are actually two types of debt: ‘good debt’ and ‘bad debt’. Property is ‘good debt’ due to you borrowing money to accumulate money. Property is an asset that will appreciate in value over time, whilst buying a car or having credit card debt is ‘bad debt’ due to these assets depreciating in value and not creating you wealth.
These are just some of the main reasons and excuses as to why people avoid investing in property, but the reality is if you want to get ahead in life and reach your financial goals or create enough wealth for your retirement then it is essential that you take action now and stop making excuses. The longer you leave it, the harder it becomes.
If you are serious about reaching your goals, but not sure where to start, then why not speak to one of the iBuyNew team who will be more than happy to help point you in the right direction.
Published on 26th of February 2015 by Marty Stanowich