The reality is that the earlier you start investing in property, the better off you’ll be. But there’s no denying that life gets in the way, and all too often we see clients walk in the door quite late in their potential wealth-building journey. While we never doubt our ability to achieve great results for them, it might involve more work and risk than if they’d started the ball rolling years earlier. For that reason, both time and timing are fundamental to building wealth.
Risk is another fundamental factor. Everything involves risk and when it comes to money management and investing, the stakes can be (and are) high. We always advise clients to consider all of the risks for every possible investment outcome, because it’s vital to be comfortable with whatever level of risk you are willing to take on.
At one extreme, the lack of money can restrict us from receiving basic and essential needs, such as shelter, food, clothing and water to other opportunities such as living standards and lifestyle desires. At the other extreme, money is extremely powerful. It’s a catalyst for progress and as the preferred form of barter it has allowed us to more widely and freely choose and exchange it. This has led to the development of an overall marketplace, where goods and services are supplied in exchange for money, with that money moving through overall economies. These marketplaces comprise buyers and sellers driven by supply and demand.
When it comes to buying an investment property, and particularly your first, it’s a daunting process knowing what to do. It can be an exceptionally steep learning curve and it’s hard to understand, collect and process all of the information out there that you feel you need.
It’s worth remembering that even if you get the location right but your asset isn’t quite the best, you’ll still benefit from the location factor. The location in which we buy will do most of the heavy lifting in terms of the capital growth return but you can also get an outperform result based on the property type as well. You might be bang on with the location but tweak things a little by focusing on the property itself.