Beginning your journey in the world of property investment can be intimidating. To be successful, a property investor has to be on their feet all the time, making meaningful investments before they go out of their hands. If you reside in Melbourne, then property investment might be a great business to start due to its diversity in suburbs. Also, the statistics showcase that in 2021, Melbourne might experience a positive growth in property investment.
As a newbie, there is a lot that you need to know before you step in the industry. There are so many myths related to property investment that they can easily hinder your growth. Thus, we have a guide to property investment in Melbourne which debunks all these meaningless myths for you and guides you the right path. Let’s begin.
- Every other person is a property investor:
Yes, there has been a significant rise in people who have bought property in Melbourne, over the passage of time. But they are not all “investors”. They are normal people, buying new homes for themselves. Very less people opt for property investment and even few people who are actively building their portfolio in this industry.
- You will get rich overnight:
There is a huge income scope in this field but never expect an immediate profit in it. If you are stepping in property investment to get rich within a month; don’t opt for it. You will have to buy and sell several homes before you can actually enjoy the profit for yourself. You need a lot of time, patience and consistency in property investment.
- Only rich people can invest in properties:
We all have heard this myth, haven’t we? Partially, it might seem true. You cannot invest in a house if you have really low income. But stats show us that people who earn less than $100,000 are also investing in houses in Melbourne. You can also get a loan to get started.
- Every Property value goes up:
The bitter reality is that it doesn’t. Many investors take advice from experts who let them know the maximum value that might increase of the property they are planning to buy. This is one of the most common myths and thus beginners invest in properties blindly. While investing, you must look into things like ongoing maintenance of the property, potential costs that you will invest in upgrading and management fees etc. Then evaluate the value that might increase and in many cases, it wouldn’t be much.
- Banks do not approve investment loans:
Many banks in Australia do not approve of them but there are always options. Thus, explore before you believe in this myth. You will definitely find your best bet.
There are so many more myths that become a hurdle for success, for beginners in property investment. We hope that these bring some clairty for you.