The biggest danger to creating wealth is misinformation.
The reality is that many Australians are still fearful of entering the market. Actually I don't blame them! They get advice from well-meaning family, friends and workmates. And they follow the latest sensationalist articles in newspapers and on TV.
And, one of the biggest problems is that people are not getting advice from successful investors.
That's why I wanted to dispel some common myths about property so that people can make sensible decisions based on solid information, not myths and fear-mongering. Take the below as one of the most common fears I hear on a daily basis;
MYTH: Now is a bad time to invest in property.
FACT: It’s true that the Perth market has slowed recently and gone backwards in some areas.
However this isn’t a threat.
It’s a massive opportunity.
You can now get set in a great suburb at a discount, and wait for prices to move again. Now prices have adjusted to the end of the mining boom other industries will start driving Perth forward, just like Melbourne and Sydney.
Oxford Economics confirm this, predicting Perth will join New York, LA, Beijing, Shanghai and London as one of the world’s biggest 50 contributors to economic growth.
Interestingly, Sydney and Melbourne did not make the list.
Some people have always believed ‘now’ is not a good time to invest as well.
This myth has been around since I started investing 20 years ago. Imagine if I’d listened to it! I’d have missed the chance to get into the Perth market, which I did back in 1993 when prices were just under $113,000 for an average house.
People back then were telling me I was mad, and that prices were too high and were about to plummet. Well-meaning family and friends practically begged me not to buy. People kept telling me I’d regret it.
Needless to say I didn’t pay attention. And now those houses are worth 4 and a half times more 20 years later.
So if they come back a few percentage points from time to time, do you think I really care? Of course not. It’s small-fry in the grand scheme of things.
Listen. The key to investing in property is to get in early. This way you’re one of the first investors to get in at the cheapest possible price. And enjoy massive capital gains as other investors push the price up.
And right now you can drive a bargain.
Be sure to keep an eye out for my next myth-busting blog, where you'll discover what's better - investing now or waiting. I look forward to filling you in on my surprising answer!
If you can't wait till then, my team and I have prepared a full article on the most common Facts & Myths around property investment which you can access here
If you have any questions around property investing and you'd like to begin some preliminary discussions around how we can help you get started on your wealth creation goals then my team of Property Investment Specialists would only be too happy to speak with you. You can contact us here or you can call Investor Assist on (08) 9200 7200