By Tim Hull
Myth number 3:
Capital growth is the single most important feature of an investment property
Capital growth is important over time. But your sole reason for investing in a property should be to hold on to it as long as you can so you can gain the maximum amount of growth.
To do this, the cash flow aspects of the investment today should be more important to you than its potential growth rates, since the ability of a property to support its own costs is what will keep you in the market.
Myth Number 4:
Your family home is a financial asset
Choosing to view your family home as an asset will allow you to ignore the very important task you have in preparing financially for your own retirement.
If you do not want to end up among the ranks of our aged population who have been forced to sell their family home and move outside the area they have been in for many years just to liquidate some cash to make life a little easier, then you must accept that your home will remain a liability until you choose to use it to leverage into income producing assets.
For many this will mean dealing with fear of debt now, and understanding that another day you wait may well be another day you waste.
The biggest myth:
Perhaps the biggest misconception about investing is that you need to be a risk taker, or otherwise highly intelligent and astute, to succeed.
Almost anybody with any level of income can put together some form of investment portfolio, and most probably include property in that portfolio.
The key is to become informed. Ask questions and read as much as you can. Consider all viewpoints and extract from all things the bits that feel right for you.
Decide that today will be the day that you start and don’t procrastinate.
Understand that the road will not necessarily be smooth and at times it will seem that the adversity is just too great to overcome, but slowly and surely you will begin to see the forest for the trees and your portfolio will grow and prosper.
And most importantly, you will have taken the responsibility for your future into your own hands, and this makes the achievement that much more rewarding.
If you are interested in learning more about investing wisely and safely in property, call Destiny Financial Solutions in Mawson on 6286 9022 or email mawson@destiny.net.au
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