4 Myths of Property Investment You Shouldn’t Believe

“You need a lot of money”

A common myth about property investment is that you need to be extremely wealthy. This has put off a lot of first-time investors, but it is simply not the case. The important factor to remember about property investment is that it is about aligning your investment with your current financial situation. For example, a smaller budget means you start with a smaller investment, such as a one-bed unit. Then, you get your foot in the door. As your cash flow begins to build up and you start making lucrative profits, you are able to make your way up to larger properties. You’ll have more fluidity to finance larger investments that offer more lucrative returns.

The point to take away from this is, property investment is a ladder. Investors will start off with little experience and little money. Over time, you can climb up the ladder and more and more investments will become accessible to you. In no way do you need to be a millionaire to invest in property.

Many investors get their foot in the door by leveraging existing equity in their homes or tapping into their savings. Others may purchase off-plan, which means they can acquire property at today’s pricing but not having to settle until a later date. Of course, it’s important to try and enter the investment with a financially responsible attitude, but the idea that you need to be extremely wealthy to invest in property is a myth.

“There is too much risk involved”

As mentioned previously, every investment strategy comes with some element of risk. Property, however, is by far the most secure and predictable asset of all. You only need to look back and compare the performances of different investment vehicles to see the drastic difference. Holding stocks in businesses, for example, runs a high risk of liquidation. Time and time again we see fluctuation in the stock market, which results in a loss of money. Therefore, it’s no wonder people assume the same for the property market if they put all the investment assets under one umbrella.

However, this is a huge myth. Property investment always manages to recover from downfalls. Losing money is extremely unlikely in property investment. The most common, but still unlikely, way that you could lose money is if you were forced to sell your property for a lower price you bought it for. This instance is extremely unlikely, as you would only ever sell your investment at a price that provides you with profit. Most investors will choose to hold onto their property until it significantly improves in price. Hence, we encourage property investment to be a long-term investment rather than short-term gains. That way, it will always be a predictable and safe investment.