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There are many ways you can win big by investing in real estate. Equally, if you lose sight of the basics, you\u2019ll end up losing something much worse \u2013 money!<\/span><\/p>\n No one sets out on their property journey to go backwards financially, so take note of these three common mistakes that investors often make, because if you don\u2019t, it may cost you in the long run.\u00a0<\/span><\/p>\n <\/p>\n Our nation\u2019s capitals are going gangbusters when it comes to property prices.<\/span><\/p>\n In July 2021 all capital cities <\/span>reported an increase in house prices<\/span><\/a>, with six \u2013 Sydney, Melbourne, Brisbane, Adelaide, Canberra and Hobart \u2013 racking up record highs for the third quarter in a row.<\/span><\/p>\n Not only is this great news for property investors, but for those ready to get into the market it offers a sense of security that house prices are continuing to go in the right direction as a current trend.<\/span><\/p>\n No one is going to argue that rising house prices are great for property investors, especially when it comes to the properties we own.<\/span><\/p>\n But, there\u2019s a trap with capital growth that even smart investors can fall into.<\/span><\/p>\n First of all, capital growth, at least when you\u2019re in the acquisition and consolidation phase of your investment journey, is a vanity project unless you take action and access that money.<\/span><\/p>\n Buying a property for $500,000 and seeing its value rise by $50,000 or even $100,000, feels great. You can sleep well at night knowing you made a smart investment.<\/span><\/p>\n But, unless you refinance your loans and grab that equity out of the property, what use is it to you?\u00a0<\/span><\/p>\n Here, by not using your dormant equity, you\u2019re putting yourself in a position that limits your earning potential which will ultimately lose you money in the long-run.\u00a0<\/span><\/p>\n <\/p>\n The quickest way a property investor can lose money is to sell an investment before it\u2019s had the time to work for you.<\/span><\/p>\n Working for you isn\u2019t only increasing in value. More importantly, property works for you by creating a second income stream in the shape of tax breaks and rent.<\/span><\/p>\n If we take our eye off the long-term plan, capital growth can beguile investors into thinking their property has reached its peak and it\u2019s time to sell.<\/span><\/p>\n <\/p>\n While very few people would chime in on the topic of how best to perform root canal surgery, or try to predict the weather forecast, almost everyone you know will have an opinion about property.<\/span><\/p>\n \u201cYou should buy, you should sell, you should do what my Uncle Fred did\u2026\u201d<\/span><\/p>\n Despite having no experience or expertise, most people think their opinion will be invaluable to you on your investment journey.<\/span><\/p>\n (Spoiler alert: It won\u2019t!)<\/span><\/i><\/p>\n While smart investors might find it easy to ignore their nosey neighbour\u2019s \u201cgood\u201d advice, there are some people it\u2019s harder to dismiss. Beware of well-meaning professionals who aren\u2019t experts in property investing.\u00a0<\/span><\/p>\n These people are often the ones you least expect, such as accountants and real estate agents.\u00a0<\/span><\/p>\n For example, with accountants you pay them good money to help you <\/span>make<\/span><\/i> money. They know all about numbers and were probably really good at math in school. Surely, they know what they\u2019re talking about when they\u2019re telling you to sell your property that just got a bump in capital growth?\u00a0<\/span><\/p>\n No, they don\u2019t! Ask your accountant how many investment properties they own and how much passive income they\u2019re generating via their long-term investment strategy before taking any advice that will likely be a small, short-term win, over a big, long-term gain.<\/span><\/p>\n Then there\u2019s real estate agents. Ok, they\u2019re just doing their job, but don\u2019t lose sight of what that job is. Real estate agents are not paid to care about how much money you make over the life of your investment journey. In fact, they aren\u2019t paid very much at all, unless they sell properties. They want their commission TODAY and so the quicker you sell, the richer they\u2019ll be. Taking investment advice from a real estate agent is an oxymoron \u2013 it just doesn\u2019t add up.<\/span><\/p>\n <\/p>\n Through listening to the wrong people and selling too fast, property investors deny their properties the chance to fulfill their potential, and they lose substantial amounts, not only in rental income and tax breaks, but in capital growth.<\/span><\/p>\n If your investment strategy is laid out over 10, 15 or 20 years, that\u2019s what you need to stick to. Getting distracted by capital growth or bad advice will only lead to regret and financial loss in years to come.\u00a0<\/span><\/p>\n Talk to property investing experts, like the coaches and mentors at TRC-Gorod who have years of experience and knowledge when it comes to the benefits of investing long-term.\u00a0<\/span><\/p>\n Learn more about how you can take advantage of the current property market at one of our <\/span>free property investor seminars<\/b><\/a>. You\u2019ll be led by a team of professionals who have demonstrated experience working across all types of markets so you can optimise your ability to grow a budding portfolio, create passive income and get set for the future \u2013 whatever that may look like for you.\u00a0<\/span><\/p>\nTHEY DON\u2019T UTILISE CAPITAL GROWTH<\/h3>\n
THEY SELL TOO SOON<\/h3>\n
THEY LISTEN TO THE WRONG PEOPLE<\/h3>\n
POSITION YOURSELF AS A WINNER, NOT A LOSER<\/h3>\n