Choosing the right property is only good if you know these 3 fundamentals

Have you ever got into a conversation with someone much older than you and they suddenly share that they used to have 5 plus investment properties but then they sold everything because it was a headache?

My 93 years old Italian neighbour is one of these examples. Migrated to Australia over 50s ago, worked really hard. Had multiple businesses. Purchased land and property everywhere but didn’t trust anyone and had no education about what to look for to keep his portfolio.

After years of stress, dealing directly with tenants and fixing the properties himself. Spending weekends travelling to go work on his investments he decided that it was crazy and not worth it so he sold everything.

It’s interesting to see what lack of information can do to someone’s wealth creation.

So where did he go wrong?

First was the fact that he wanted to do everything himself so he didn’t have to “spend” money paying professionals to do the work.

It’s incredible to see how much we don’t value our time as money and we believe we can just do it ourselves because it’s cheaper. However that time spent on the weekends when it was supposed to be your time to rest we will never get it back and no money can pay for it.

Second, dealing directly with your tenant. How could you possibly know what is the best rental return for your property? How to deal with your rights and the tenant’s rights and responsibilities? How to emotionally detach yourself from what’s right and what’s needed?

Third, not talking to an accountant that helps people manage their investment portfolios that could have guided him. Could have told him about all the money he was wasting in claiming on tax and all danger he was putting himself and investment by doing things without having proper insurances that would cover any of the works he was doing.

At the end of the day we always go back to the first basic fundamental of property investing. EDUCATION

You must Educate yourself to be able to take the right decisions before you go shopping for property.

This is exactly what we do best at PB Property. We educate our clients so they can take the best informed actions towards their property.

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