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Buying in your backyard

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Transcript

I asked a question of how many times have you gone and visited the property that you own in a location near you. Now, look the sample size was quite small but I asked about 20 different property investors we’ve supported who own homes in the location that they live in and there might be nearing suburbs the same suburb or particular areas. And when I asked him that question it was less than one time a year. So some people were one some people were nothing some people were two but when averaged it out it was still less than one time of year right now. When you think about, that wasn’t the whole reason about buying in your backyard so you could feel comfortable, feel safe. It’s right nearby. You can touch the property you can feel it. You know where you’re going to go and what it’s going to do for you.

Those are some of the reasons but then when you actually own it,they just go out the at the room and you’re not really doing it for those reasons because you’re not going to That you’re not inspecting it you hire a property manager. So that’s where when you think of buying in your backyard whilst the reason sound nice and sound good when you’re first making that decision the truth is many who do own it and do take that decision for that reason don’t end up following it up with the same actions.

Now, there are some people who self property managed and for them it might be a different story but when it comes to buying in your backyard, if the numbers make it work, then it makes sense. But if the numbers don’t make it work don’t feel that there’s a competitive advantage of doing it because I’ve seen many property investors and they still don’t visit their properties or don’t check it out. I don’t put in the time even though that was the whole intention of look if something happens.I’m here. Well last time I checked with many of these investors when something happened they called a property manager they spoke to them and they said sure or maybe they call the Tradesmen same thing as basically could happen under state.

So when you’re thinking of investing buying in your backyard is a term many people think before it happens. There’s always been “what they’re going to get from it”. But sometimes when they make that decision,they don’t really end up chasing or getting those benefits that they thought they had and it could have been for many reasons time. How much they know about what to do when those scenarios happen and really just getting emotionally involved. I mean, they might not have the capacity to go into that level. So from that reason maybe not use buying in your backyard as a comfort for yourself to invest when you don’t act on those comforts.

So from that perspective when looking to invest buying your backyard can be powerful if you’re going to back it up with the advantages that it has and of course the main reason is if it’s an investable location showing results or signals were results now. Now from that angle that does mean you should really start to consider buying a new backyard as well as interstate and maybe even across countries because at the end of the day, we do go into that mentality which shares when we think of shares locally a short shares internationally and you don’t always step at Telstra’s head office when you go and wonder how this ship for me. You don’t go into the head office. You might look at reports or data so forth.

So from that perspective, you know consider buying in your backyard, but consider the work that needs to be done if you’re using the advantages for it and then also consider investing thoughtless.

That’s it from us here at InvestorKit, The experts in Wealth Creation helping you take action.