Investing in a property is considered to be one of the best investments in terms of ROI. Though the global real estate market has seen its ups and downs and hence has a reputation of being extremely unpredictable, it has become prone to many myths and misconceptions that once were strongly believed to be true, but today no longer exist.
Money Multiplies Money
A general myth about investing in a property is that money makes money. You have to have good capital to begin earning more money from it. However true it might sound, it is a myth. There are many people I know who used untapped equities at their homes to use as a seed for capital investments while others learn the art of saving to build up capital. So, you don’t need a lot to start investing I property, you just need to have a plan to begin with and determination to stick to that plan.
I Don’t Earn Enough
Almost everyone makes enough money to become an investor, the parameters or features of the property may vary, but with the right strategy in mind, it’s easy to invest all the while managing your other finances. Maybe you can start on a lower range like Deira in Dubai and then maybe expand your investment to buy villas in Jumeirah or buy apartments in Jumeirah.
My Superannuation Will Take Care Of Everything
It’s not sensible to just rely on superannuation or a job for your future. While many financial planners advise saving 5% to 10% of your income to savings, it is never enough once you reach your target. You cannot save your way to making a good investment in property. You have to start investing while you are working on the job.
Property Investment Is Risky
With the faster-growing market and real estate trends, this myth somehow holds some value. The property market in various regions depends on a lot of factors and in some cases, the investment is somehow risky given a fair probability of depreciation. However, the rate of depreciation is different countries and property investment is not as risky in many regions.
Timing Is Vital
I have seen successful investors being successful at every stage of the property cycle and unsuccessful investors not getting the desired ROI even at the best times of the property cycle. You don’t want to buy a property when the prices are at its peak, instead, you have to be careful about the time and how to make use of the right opportunity at the right time, no matter what stage your property cycle is.