There is no way to totally eliminate the fears associated with property investment, this is because there is no way to totally eliminate the risks associated with property investment. There are, however, ways to minimise the risks and thus reduce your levels of fear in order to help you overcome them.
With careful research and analysis into the property you wish to invest in, you can make an informed decision that is more likely to deliver a positive outcome. Here are ways you can go about minimising your risk in order to overcome your property investment fears.
1. Fix Your Interest Rate
If the fear of change causes you anxiety, then fixing your interest rate when borrowing for your investment is one way you can minimise your chances of being caught in any rise of interest rates. There are some negatives to a fixed interest rate, such as having to pay a break costs should you choose to pay out the loan early. A variable interest loan means you are vulnerable to rate rises, but it also provides you with more flexibility to seek refinance or swap to a new lender with a more competitive rate.
2. Purchase in Predicted Capital Growth Areas
This means you need to thoroughly research the area you wish to purchase property in, in order to determine the right location with the highest predicted capital growth and solid demand for rent. If you are not sure where to begin researching property, visit our blog on How to Research Property Like a Professional. Once you find an area that fits this criterion, you need to also look into its demographics, population growth and any future development plans. There are many great online resources available to you to help you adequately research before investing.
3. Don’t Wait Too Long
After thoroughly researching your property of choice as best as possible, inevitably, there is a leap of faith involved in purchasing property. At some point, you simply have to go ahead and just do it. If you wait too long for the ideal conditions, then you are likely to never start. The longer you take, the longer your goals of success take.
If you are waiting until you feel you have enough experience, find someone adequately experienced to ask advice of. If you are waiting for that dream investment that meets all of your checklist points, then you are probably going to be waiting forever. There’s simply no such thing as a ‘perfect’ property investment, there are ‘full of opportunity’, ‘great value’, ‘perfect location’, ‘the time is now’ property investments. All of which will be lost to you if you wait too long to say ‘yes’.
Quite simply, don’t let fear prevent you from achieving your wealth goals and the success you’ve been dreaming of.