The Perfect Investment

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Just when you thought “okay, we’re going to find the perfect investment” many people get into the trap of trying to find the perfect investment for them. And for them. I don’t mean even an investment.

It’s this huge owner occupier lens that’s placed on but to an investment property. So you can imagine if you’re sitting in a $1,000,000 place or three or four million dollar place. What does your taste become for an investment? Usually most people start mimicking the nice place, that got for the investment they should have. Some people are graded putting that emotion aside, but a lot of people start to look at where they are, where they’re living, what’s in their house and imagine that everyone else who just wants to buy a property or rental property must have that. Now yes, there are things that are going to be important or things are going to look at 10 in appeal where the type of heating the air con and a few other factors. But at the same time there are going to be data points that would usually show that. All right, how long did it take for the last listing? And how long is it taking it in comparison to the average? How much is it renting out for? Is it renting out for much less or much more than comparables, and the word comparables as well are thrown around far too easily. ”Well look that one looks better” but then wait it’s 30,000 more “that one looks worse” Okay, but that’s 20,000 less.

So when we start looking at that and really looking at that investment property, it needs to have that separation from the perfect investment for you versus what the data says. Now when data comes into the picture it really can show in most cases some of these nuances which we talked about with listing, how much it’s renting for, but also how much it sold for, or how much others are selling around it. Other things could be as well is, just in terms of the listing itself some agents are fantastic in marketing online but some agents are not so great.

But sometimes we’ve picked up deals that are just phenomenal but they weren’t even looking that great online, photos weren’t that evident, photos went to that level. Maybe it didn’t reflect how it should look in person. But when we went on the ground and we sort out, I mean that was looking fantastic and it started looking much better. And that’s where perhaps the open homes that weren’t as busy there could be some reason behind it. People are time poor people don’t have the time to always go out and sometimes it online field-look can really dictate a lot. But don’t let that stop you from picking up what could be a good investment just because you’re trying to fulfill the perfect investment.

Now, then the question comes up if it was the perfect investment, why would people sell, right? Sometimes they do sell because it’s reasons that go beyond what the property looks like in the area. It is personally, financially, family, so forth. So when looking at your next investment property consider some of the things that are within your comforts, but really let the data first to paint the picture of what people tenants vendors other owners are really painting there. Then from there start to look at a deeper but remember to try and not place your bias on it as much as possible because that will really help you separate your emotions what you’re willing to pay and what the property may be worth or may represent many years from now and what the actual investment value is.

So that’s it from us here at InvestorKit, the Experts in wealth creation helping you take action.

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