The most important real estate lesson I learnt, came from my Dad
We often learn our most valuable lessons from our parents.
At least, it was certainly that way with me. My Dad was also in real estate and he taught me the one lesson that I constantly repeat to my clients: The value of properties is in the land.
After all, you can’t change or expand your land, but you can always get bricks and mortar later to improve it. Where you purchase is often more important than what you purchase.
Why am I telling you this now? It’s because real estate is getting a lot of hype right now. A combination of low interest rates and more people getting their start in property makes investors feel pressured to rush their decisions.
Yes, there’s value in land. Yes, it’s easier than ever to buy because interest rates are so low.
But before you jump into the market, I want you to remember that the property market is cyclical.
It’s on the way up right now in most major markets in Australia, but it’s essential to remember that there’s still time to invest.
Will real estate be very strong for the rest of the year? It looks that way.
But remember that as an investor, you have to play the long game.
What if you had to pay $20,000 or $50,000 more for a property because you took your time with research? It seems like a lot, but it pales in comparison to the projected value growth of the next 10 years. Whereas making a rushed decision and purchasing the wrong property can cost you far more than that in lost opportunity.
How can you avoid making rushed decisions?
It’s all about understanding your long-term goals and finding the right advisors.
To start with, you’ll need a good finance broker and a property expert. You’ll also want a great accountant and maybe even a solicitor to see the transactions through.
The goal is to find people more knowledgeable than you who can lead you to the best property for your money.
Waiting a bit longer will pay off in the end, as long as you follow expert advice and end up with a promising property.