Is it easy to invest?
I’ve met countless people who had an investment property, and swear they’ll never have another.
People who had a dream of being wealthy investors … and ended up worse off than when they started. People who watched their friends and family gain hundreds of thousands of dollars while they made a loss.
It’s terrible to see.
But it’s not like they were victims of bad timing because I’ve made money every year, and so have our clients.
It wasn’t their financial position either because they were quite wealthy to begin with, and had impressive incomes.
And it wasn’t because they weren’t ‘smart’ enough for this. I’m yet to find anyone at any education level or in any occupation that couldn’t make it work.
What Went Wrong For Them?
Whenever I meet someone who’s had a bad experience like this, I like to ask them what went wrong.
The answers are always very revealing.
As a result I know exactly what mistakes send investors off track the most.
This way, if you choose to invest and not work with us at least you’ll know what not to do.
Mistake 1. They Maxed Out Their Borrowing Capacity
One huge mistake they made was borrowing every single cent they could, and investing the lot.
I know it can be tempting, however, it’s not the wise choice.
Plenty have gone ‘all in’ and made it work. But a lot more have failed.
What you need is a buffer, so you have room to move if you need.
Never, ever invest every cent a bank will give you. Having a buffer makes sure you’re still in a safe position if (or when) rates go up, if rents pull back, when you have a vacant property, when you get some unexpected maintenance bills or something unforeseen happens.
Even something unrelated to your investment which costs you money.
If you don’t have a buffer, it only takes a few things to go wrong before you find yourself taking out credit cards or personal loans to get through.
One loan becomes two, two become three, and before you know it, you’re in financial trouble.
Mistake 2. They Bought In The Wrong Place
The Australian real estate market isn’t just one whole market.
It’s made up of different markets, and some are great and some are terrible.
If you buy in a terrible one, it’s going to hurt.
Some people buy in places so bad that 5 years later prices haven’t moved.
“But” they tell me “It was all I could afford at the time”.
Meanwhile, other people have seen their house almost double in price.
These are the ones we look for, and the numbers above speak for themselves.
The suburbs from our previous 2025 locations report grew on average 9.6%, and all had rental yields above the national average. The top performer in fact was Townsville which soared an astonishing 22.6%.
If you don’t have our latest locations report you can get it by clicking here
Mistake 3. Buying On Gut Feel
There’s a lot of times when your intuition serves you well.
However, buying real estate is NOT one of them.
When you invest, you invest on the numbers. Follow the data and do your research. Don’t invest on emotion or gut feel because when it comes to money … your heart should not over-rule your head.
Don’t buy in a suburb based on emotion. Just because somewhere is great to live doesn’t make it a great investment.
It might have just been through the boom part of the cycle which means you missed the growth you need. And it might not move much for a while.
Or rental yields might be too low.
Our clients make the most money by investing in affordable areas, near infrastructure and jobs.
Not enough of them are being built.
And they’re in high demand.
Mistake 4. Using The Wrong Borrowing Structures
Setting up your loans is a bit of an artform, and most investors don’t understand it.
The wrong borrowing structure can cost you a fortune in the long run, usually because it locks you into a bad deal you can’t get out of. And it’s stopping you from investing again.
Some people use their own home as collateral for their investment loan. Or the loans they took out were the wrong type.
Sometimes they attached offset accounts to the wrong assets. Or they went for a slightly lower interest rate over benefits, and didn’t have the flexibility they needed when the time came.
And because of these mistakes, when they went to borrow again, they couldn’t.
There’s actually a way of setting up loans which let you keep borrowing, which cost you less overall in interest, and which get you more back in tax.
It’s called a Master Facility and it’s something I built and perfected over my investing journey.
And when you spend time with one of our Senior Property Wealth Planners, they’ll show you how it works.
Mistake 5. Getting Professional Advice Once The Horse Has Bolted
Investing might look easy.
Buy a house, rent it out and see the money roll in.
Except it doesn’t work like this.
There’s a lot to consider, and when you’re talking about a 6 figure investment, you want to get it right.
The most common mistake I see is people investing without getting the right advice. And then when it all goes pear-shaped they try and get a professional to fix up the mess.
If you go about this in a casual way and you don’t get the right people involved early, it can cost you a significant amount.
Paying For Advice Is Not A Waste of Money
Investors who go it alone, skip the right advice, and make one or more of these mistakes, often with consequences that are difficult to recover from.
Instead, you want to be one of the people who got the right advice and made the right moves, and are watching their wealth grow month after month.
For most people, property is the biggest financial investment they’ll ever make, which is why you want to get it right.
That’s why it’s so important to partner with the right experts from the start. If you don’t, it could become your most costly and avoidable mistake.
The investors who come to us after things have already gone wrong almost always say the same thing: they wish they’d done it properly from the start.
Getting it right matters. The right guidance is a small outlay for the right results, but without it, the cost can be significant. And that starts with getting the right people in your corner early.
Want Some Details?
However, I can understand you might be a bit sceptical, and not ready to move forward until you know what it’s all about.
So to begin, we’re offering you a free consultation.
The first call is completely free of charge so you know what we’re about and how we work, and we can understand your situation, and what your goals are so we can see if we’re a good fit.
This is a one hour call with one of our Senior Property Wealth Planners to discuss the path forward for you.
And this way you’ll know your options.
We’ll map out an overview of what you should do, and when.
We’ll give you the steps to make it happen.
Plus show the opportunities available in the market.
And of course answer any questions you have.
There’s no obligation or pressure here.
We figure if we give you actual value and information, you’ll see how deep our knowledge and experience is, and might consider using our services if you move ahead.
If not, at least you’ve taken the time to find out what your options might be and assess them.
Put your details below and we’ll call you to book a no cost and obligation free call.