Why are most Australian investors unable to go beyond one investment property?
Have you ever wondered why so many Australian property investors seem to hit a roadblock after purchasing their first investment property?
Surprisingly, more than 70% of Australian Investors own just one investment property and approximately 20% own two investment properties. Less than 10% of investors have ventured beyond two investment properties.
So, what really holds most people back from investing in more than one property? Let’s find out.
NO STRATEGIC PLAN
Most investors fail often to have a well-defined plan. They don’t have their property investment goals defined before starting on their property investment journey.
Ask yourself this - What do you want to achieve with your investment? How much is your borrowing capacity? Can you comfortably hold on to the property for long-term?
You need to have clarity on many such questions before you purchase your investment property.
THEY LET EMOTIONS IN
The property market is cyclical, and it's easy to get caught up in the hype. Many investors make the mistake of buying with FOMO when the market is hot, or getting too worried when there are negative media headlines.
Investing in property is like investing in a business, and whilst it is ok to think emotionally, getting the right facts is essential in ensuring that emotions do not negatively impact your investment decisions.
NOT HAVING THE LONG-TERM MINDSET
Most investors in Australia sell their investment properties within the first five years as they are either focused on gaining short-term profits or influenced by negative media.
Trust the magic of compound growth! It doesn't matter when you buy a property, as long as you hold it for the long term.
THEY DEPEND ON DIY, RATHER THAN A TEAM OF EXPERTS
While DIY may work in many other areas of life, it may not be the best way forward when it comes to property investing.
Having a professional team can allow investors to learn from their experiences, mistakes, and successes, providing a much clearer roadmap for building a winning portfolio.
TEAM SONI CAN HELP
At SONI Wealth, our team is dedicated to helping you build knowledge, and prepare you to make the right investment decisions with confidence.
If you’re looking for the right partner in your property investment journey, reach out to us today!