In life, there is always the possibility that you’ll make a mistake. You might not see a curb and trip over it, or you might lock yourself out of the house. You might even forget your coffee cup on top of your car before driving away.
These mistakes are easily fixed. When it comes to your finances, even a simple mistake could end up bankrupting you. I’ve seen many people make the same mistakes over and over again. But they’re easy to avoid if you know to look for them. Below I’ve outlined these three mistakes and how you can avoid them as a first-time investor.
Mistake #1: Letting Your Emotions Take Over
Investing is exciting. It’s easy to get caught up in the emotions of buying your first property. The problem is, if you don’t keep these emotions in check, it can cost you big time!
When you buy your first family home, it’s okay to get excited about it. After all, you’ll actually be living in it! But when you’re buying an investment property, you need to treat it like a money printing machine. Nothing else.
If you get caught up in how beautiful the house is, or how gorgeous the view is, you’re bound to end up making the wrong investment choice.
Mistake #2: Not Doing Your Research
Another common mistake I see is that new investors fail to do their research. They “follow their gut feeling” or they listen to news reports to make investment decisions.
Making this mistake can put you at risk of losing money on the deal. You need to make sure that you’re looking at this property as a money-generating asset and nothing more. Do your research on the local market. Crunch the numbers inside and out before signing any paperwork.
Mistake #3: Not Knowing Your Goal
People choose to invest in property for a variety of different reasons. From buying a home to rent to buying a vacant lot to develop, you can do a lot with a property. The problem is so many people go into property investment without any clear direction. They think that they’ll browse the market and figure it out as they go.
When people do this, they fail to plan from the start and make poor decisions. Before you start looking at properties, think about your end goal. Weigh the pros and cons of each option before putting up your money.
Talk to ADPEN
Another pitfall many people fall into is that they fail to consult with a team of experts. We’ll help keep you on the right track and ensure you avoid making any costly mistakes along the way. Get in touch with us today and let’s discuss your goals!