When it comes to property investment, the most overlooked aspect of risk management is actually lost opportunity writes Property Investment Advisor Richard Sheppard.
Most people underestimate their capacity for investment and sadly this means they could be missing out on $1,000 – $3,000 per week in gains.
Those who enter the property market are often surprised at how simple it can be with the right support and guidance.
So why do many people baulk?
In my experience, the main reason is a lack of financial literacy and education about the property market. However, if you attend a professionally run one-on-one property investment course, it can take as little as half to one day to learn the fundamentals and understand the enormous opportunity that current market conditions present.
I’m not talking about a group ‘seminar’, as these are often just a way for companies to generate prospects for their business, rather a genuine one-on-one course where the objective is to learn and set goals.
The media loves to use scare tactics and drama to drum up attention. You’ll often hear the news or current affairs programs refer to ‘THE property market’. We might be told that the Australian property market is ‘overheated’, or that the ‘bubble has burst’, but in reality, there is not one Australian property market.
Instead there are many property markets all at different stages of their growth cycle. Property investing is all about timing. As one market wanes, another emerges as an ideal target. The secret is to learn which areas are in their growth phase and to engage the support of professional advisors to ensure you have the appropriate strategy and risk mitigation steps in place for your circumstances.
Some people also fear financially over-committing if they invest in property. However, it can cost less than $50 per week to fund an investment property. A $500,000 property with a conservative 5 per cent capital growth will grow by around $500 per week. In this scenario, not acting equates to around $25,000 in lost opportunity every year. That amount could potentially have been used as a deposit on another property.
I can’t tell you how many times people have said to me “I wish I’d done this sooner” or “Why don’t they teach this stuff at school?”
Perhaps it’s time to stop being afraid of what could go wrong and start being excited about what could go right. Let’s face it, another week’s delay could equate to another week until retirement!
Richard Sheppard is the CEO and founder of inSynergy Property Wealth Advisory. inSynergy provides a broad range of professional services designed to assist with all aspects of property investment. Phone 1300 425 595 or send us a message.