Will I Buy or Will I not Buy

[molly1a]

Why is it so hard to commit to an area for an investment.Have spent weeks looking at a multitude of areas Hunter Newcastle, Central Coast upper end, Jervis Bay area, Victoria,the list goes on but I am having awful trouble commiting I have gone to the trouble of buying latest Residex Best Rent report so have places to look at but cant commit I am looking at investment with excellent rent return plus growth
Should i buy different report?
Considering should I pay for some education?
Read a particular Book?
I want the confidence to pick area and then buy....
Any suggestions
Thank you

 

[Charlotte30]

Will I Buy or not Buy

I think fear is holding you back. Be confident in your analysis, decide yes or no and just do it. I seem to remember going round and round looking for the best deal at the begining of my investing journey. After a while I realised it just had to be a good deal not the best. After 9 years of investing I still agonise, although not as much. I once walked away from a very good deal that was cashflow positive. I based that decision on the advice of a builder and real estate agent. That was before i learned to trust my own decision making.

Cheers
Charlotte30

 

[BV]

Molly

Why is it so hard?
You've got what we call analysis paralysis.
You analyse things too much so you end up loosing confidence.

You need to narrow down your list.
Past performance is no guarantee of future capital gains so there is no need to look at Vic for now.

Just concentrate in 1 area and central coast/newcastle is no worse than other areas. If you can get in the central coast/Newcastle area properties yielding 7% go for it.

The key is to have low holding costs.
Capital gain will come with time.
I'm guessing you want to buy something and hold it for a decade or so.
Is this correct?
Because if you expect it to double its value in 2 years it just won't happen.

Close to home is best in my opinion and I'd avoid the touristy areas because they often have long vacancies.
I also prefer to have continuous tenancies than to rely on seasonal tenants.

 

[lizzie]

bv is right.

you are looking at so much you are confusing yourself on what you want - and forming a fear of making the wrong decision.

firstly you have to decide what path of property investing do you want to take and the one that suits your lifestyle. houses, units, vacant land and build, renovate, developing ... there are so many choices that it is hard to settle on one - and nothing is set in stone either. you can start down the renovate path and after a few years have had enough of that and move onto building.

we have tried all of the above plus a few more and finally settled into buying units that needs a quick cosmetic makeover (paint and carpet), paying others to do the work and then renting them out.

the priority for us in choosing what to buy is that they must be positve, neutral or so close to neutral that they will be within 18 months once we have done our reno.

so - decide what type of property you want to buy, what area you want to buy it in, what sort of percentage return you are after and then look for that combination. when you see one that is near enough (you will never get perfect) then jump in and buy!

will you make mistakes? sure
will you have some unreal brilliant buys? sure
will you learn so much your brain implodes on your first purchase? guaranteed
will you learn anything by spending money on more and more reports? nope

 

[shim]

Yes, I agree with Lizzie.

Set yourself a budget, do the maths and if you believe the property is right...then just go for it!

It is through our mistakes that we learn...and if you dwell for too long, you may very well miss the opportunity that was given to you.