When it comes to property investment and wealth creation, misinformation and myths pose a potential danger.
The property market is always buzzing with a lot of baseless information, which eventually results in a wrong move.
Therefore, before you venture into the property market and make any investment, be sure to separate facts from fiction. These are just some of the common myths about property investment:
Myth # 1 – You Need to be Rich to Invest in Property
Fact: Things have changed a lot in recent times. Nowadays, many individuals with an annual income as low as $100,000 are investing in houses. Moreover, many individuals have bought property with the equity they get on their current property.
Myth # 2 – Real estate is always going up in value
The recent real estate cycle might make this myth seem correct but the fact is real estate has its fair share of ups and downs.
If you take a quick look at the history of property market values, you can see that property value does not always rise. Sometimes it remains stagnant, while at other times it plummets.
To ensure such negative market change does not affect your wealth creation efforts, invest in houses or properties in the suburbs.
Myth # 3 – Invest in property in or around CBD
Buying properties near CBD is a great strategy but it’s not the only place where you can invest. While these areas tend to perform well when it comes to capital growth, it does not mean only these areas have potential.
Smart investors will look for property situated in areas where market drivers are stronger, even if these areas are outside the CBD.